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.