20.5 Business Trip Deductions

The following expenses of a business trip away from home (20.6) are deductible if not reimbursed by your employer:

• Plane, railroad, taxi, and other transportation fares between your home and your business destination
• Hotel and other lodging expenses. You need receipts or similar evidence for lodging expenses; there is no IRS standard lodging allowance as there is for meals (20.4). Although lodging costs are generally deductible only on business trips “away from home” (20.6), the IRS will allow an employee to deduct local lodging costs (not away from home) if the lodging is necessary on a temporary basis for the employee to participate in a bona fide business meeting or function of the employer (20.6).
• Meal costs. You may claim your actual meal costs if you maintain records, or you may use the standard meal allowance (20.4). Whichever method you use, only 50% of the unreimbursed meal costs are deductible (20.16).
• Tips, telephone, and telegraph costs
• Laundry and cleaning expenses
• Baggage charges (including insurance)
• Cab fares or other costs of transportation to and from the airport or station and your hotel. Also deductible are cab fares or other transportation costs, beginning with your first business call of the day, of getting from one customer to another, or from one place of business to another.
• Travel costs to find a new job are deductible (19.7).
• Entertainment expenses incurred while traveling away from home are deductible subject to restrictions, including the 50% deduction limit (20.16).

Cruise ship.

If you travel by cruise ship on a business trip, your deductible cruise costs are limited to twice the highest federal per diem rate for travel in the United States on that date multiplied by the number of days in transit.

Important: Record-keeping requirements. See the section for record-keeping rules to support a deduction for unreimbursed travel expenses or to avoid being taxed on employer reimbursements (20.27).