Simplifying Business Travel Tax Deductions: A Quick Guide  ✈️

With all the headaches of running your own small business, the last thing you want is tax time headaches from improperly tracking deductible trip expenses. 

Understanding a few key rules around deducting travel can save you tons of time and pain.

Let’s break down eligible business trip expenses, required record-keeping and other crucial compliance factors made simple by Parpera's all-in-one money management app.

Deductible Direct Business Costs

Most tax-deductible travel falls into two buckets - direct expenses like:

✅ Transport: Flights, rideshares, parking, toll roads

✅ Accommodation: Hotels, motels, apartments

✅ Meals: Road trip snacks, restaurants (for overnight stays)

As long as trips tie directly back to a business purpose, deduct the full costs confidently. 

Indirect Expenses Not Deductible

But the ATO draws the line for indirect expenses with tenuous business connections like:

❌ Extended hotel stays post-work timeframes

❌ Souvenirs & gifts brought home

❌ Families or friends tagging along

Substantiating Overnight Travel

Tax administrators more heavily scrutinise overnight trips vs same-day travel when assessing deduction validity. 

Be sure to keep applicable records like:

🗓️ Transport documents 

🏨 Hotel receipts 

📝 Travel diary 

Claim Employees' Reimbursed Travels Too!

Don’t forget work trips taken by employees represent legitimate write-offs as well when directly reimbursed. 

Travel Deductions Just Got Easier!

Parsing piles of receipts after red-eyes or jam-packed client visits drains your last scraps of energy. 

Simplify travel deductions by capturing and categorising everything automatically with Parpera!

Our mobile-first money management app helps you track and reconcile expenses easily, and gives you clear line-of-sight of your travel expenditures and business activities. 

So come tax time, you can smoothly, easily, and accurately claim your travel deductions without heartburn.

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Published on the
January 19, 2024
Small businesses

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