Business Trip Expenses
If you have to travel outside the office as part of your job, your employer likely has written polices regarding what types of business trip expenses are reimbursable upon your return. There may also be a system in which travel advances, issued prior to your departure, can offset common expenditures. For the self-employed, business trip costs are considered tax-deductible by the IRS if the purpose of the travel is justified and expenses can be verified with original receipts.
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Transportation
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Business expenses incurred for plane, train, bus, taxi or car travel are all reimbursable. In both the public and private sector, individuals who drive their own cars can claim a mileage reimbursement to cover the cost of fuel. If the vehicle is a rental, only the rental charges are reimbursable. Parking expenses can be claimed in either scenario, but traffic tickets or fines are the driver's responsibility. While plane and train receipts are automatically given at the time of purchase, they must be requested from bus, taxi and limo drivers in order to be included on an expense report.
Lodging
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For overnight trips, permitted expenses include hotel, motel and inn stays, but not stays with friends and relatives. Companies and government offices typically have an approved list of accommodations in designated cities that meet their economic considerations and are close to meeting sites. If an employee wants to stay in pricier lodging, she pays the difference herself. The exception to this is, if no rooms are available at any of the hotels on the approved list, and the pricier room is the only option. Lodging expenses for spouses and children are not paid for by employers, unless they're part of a prearranged agreement.
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Meals and Incidentals
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Breakfast, lunch, dinner and snacks are reimbursable expenses and are usually based on the actual duration of the employee's trip. If, for example, a business trip starts at noon and ends at 9 p.m., only lunch and dinner expenses are claimed because it's assumed that breakfast was eaten at home before the trip began. On average, meal allowances are $10 for breakfast, $15 for lunch and $25 for dinner; anything in excess of the allowance is paid for by the traveler. Incidentals such as phone calls, faxes and tips are reimbursable if documented in an expense claim.
Entertainment
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If entertaining company clients is part of the business travel agenda, the cost of tickets to shows, clubs and events may be reimbursable under company policies. It's best, however, not to assume. Confirm that these extracurricular activities are covered before you make reservations or spring for a day of golf. As with other business expenses associated with travel on your employer's dime, you're generally expected to exercise good judgment and not bring along friends and family members unless you intend to pay their way.
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References
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