IRS Tax Helper

When the need to travel arises, business professionals have to make it clear whether it is business-related or some form of vacation, and whether they are staying in the mainland or taking the next flight out of the country. This could spell out a big difference when it comes to tax deduction.
Tax treatment in the US for travel expenses depends on how much of the trip is related to your business and how much of it occurred within the United States. If the trip is primarily for personal reasons, then the entire cost is considered as a non-deductible personal expense, although the person involved has the option of deducting any business-related expenses he had during the trip. It should also be noted that when business activities such as attending seminars are suddenly scheduled, this does not change what is really a vacation into a business trip. Now if you are traveling entirely within the United States, tax is not payable if it is a business-related trip. If, by any chance, you extended your trip and turn that extension into a vacation, then only the business-related expenses will be deducted.
Let’s say part of your business trip is to travel outside of the United States. You have to bear in mind that some of the cost deductions of getting to and from your destination may be limited. If the travel is purely for business reasons, then all travel expenses are deducted for tax purposes. The trip is also considered as entirely for business even if you spent some of it on vacation if you meet at least one of the exceptions: you do not have substantial control over the arrangements of the trip, you traveled outside of the US for less than a week, you spent less than 25% of the total time you were out of the country on personal activities, and you established that a personal vacation is not a major consideration.
It is important to note that only the business portion of one’s traveling expenses, such as getting to and from his or her destination, is not subject to tax. So the next time you travel, make sure to meet tax deduction exemptions for a worry-free travel.