As the sole owner/employee of an LLC taxed as an s-corp, you may be curious as to what qualifies as a 100% deductible travel expense.

NO - NOT A DEDUCTIBLE TRAVEL EXPENSE 🚩

Car Loan or Lease Payments

Car Wash

Car Repairs and Maintenance

^these are NOT deductible expenses unless the vehicle is registered in the name of the business and used exclusively for business.

YES - A DEDUCTIBLE TRAVEL EXPENSE

Airfare

Gas

Hotel

Travel Meals

^these are deductible travel expenses ONLY IF you are on a dedicated business trip outside of your tax home (The Internal Revenue Service (IRS) considers an employee to be traveling away from home if their business obligations require them to be away from their tax home for a period longer than an ordinary work day.)

WAIT, THAT DOESN'T SEEM SUPER GREAT

Don’t be too discouraged by the stringent rules set by the IRS for the deductibility of travel expenses. The good news is that you’ll be able to still capture the expenses associated with using your car for business purposes via your accountable plan expenses using the IRS standard mileage rate.

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