Conducting business out of town can cost you, but you can take tax deductions for business travel and write off the expense at the end of the year. Whether you drive, fly or take a train or bus, keep good records of your business travel via receipts or mileage so you have proof of what to deduct.

It may be best to familiarize yourself with the standard mileage reimbursement rates and other tax deductions for business travel you can take from expenses incurred while you are away. Deduction tax rules can change from year to year. Keep up to date to avoid the risk of an audit.

Consider the following tax deduction information:

1. You can generally use tax deductions for business travel, including tips and cab fare, when the entire trip was business related. Meals while traveling can only be deducted at half price.

2. Don't forget to deduct not only lodging but also hotel expenses such as laundry or using telephone, computer or fax equipment during your stay, as tax deductions for business travel.

3. Other lesser known tax deductions for business travel include any costs of displaying materials while at an off-site work location.

Action Steps
The best contacts and resources to help you get it done

Receive tax deductions for business travel help from an accountant

A tax professional can best advise you in what kind of tax deductions you may be eligible for. Professionals can also help you get your books in order for the end of the fiscal year and help you prepare all of the necessary tax forms.

I recommend: Discuss your unique situation with a professional from PriceKubecka, a certified public accounting firm. Butler Consulting Group offers tax services, including tax planning and compliance.

Download forms and get information from a tax deductions for business travel site

When dealing with taxes, there is no end to paperwork. The proper and official forms, along with documentation such as original receipts, are necessary to complete your taxes to receive the deductions due to you. That's why it's important to hold on to documentation of potential deductions all year.

I recommend: The Internal Revenue Service provides an update on Section 179 rules and regulations and how much can be deducted in a given year. Go through the National Federation of Independent Business checklist for small business tax deductions to see if there's something you can deduct that you may have overlooked.

Use providers of software to track tax deductions for business travel

When it comes to tracking tax deductions for business travel, providers of software can give you a hand. Many programs feature expense tracking, which can be configured for business travel. Consider using the demo version of a software program before purchasing so you can fully understand how your business can benefit from the tracking software.

I recommend: Review QuickBooks options from Intuit and then get more information on the product you choose. Research features of Peachtree's Complete Accounting 2009 software package, which allows for time and expense tracking. You may also want to check out the Quantum 2009 and Premium Accounting 2009 options.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A tax deductions for business travel website explains deduction eligibility this way: If employees are required to be away from the area in which they do business for longer than an ordinary working day and sleep or rest is required to complete that work, all expenses incurred can be deducted.