* If you’re on the road for just a day (no overnight), the cost of your meals is not deductible. So, if you travel on businesss to a nearby city, you can only deduct the cost of transportation not the cost of meals or other traveling expenses. Hint: if you meet someone for a meal, the cost may be deductible at 50%.

* You can deduct the cost of travel only if it is an “ordinary and necessary” business expense. You can deduct travel expenses incurred in attending a trade, business, professional convention or meeting if there’s a true relationship between you trade/business and will benefit your business. If it’s for political or social purposes that don’t relate to your business, the expenses are not deductible. Hint: to deduct the costs of social events, make sure to document any business discussions and who you talked to; follow up with those people afterwards.

* If the travel is both business and pleasure, the traveling expenses may still be allowable if the trip is entirely within the United States and it can be shown that the primary purpose for the trip was to transact business. However, the cost of meals, lodging, and other expenses incurred during the pleasure portion of the trip are nondeductible. Hint: document, document, document. 

* If the you travel outside the United States for business purposes and engage in both business and personal activities, the transportation expenses to the destination must be allocated in proportion to the time spent for business purposes. There are some additional rules about international travel for both business and personal that you should review with your tax preparer. Hint: keep a detailed log in your calendar because the more info you have, the better in case of an audit.

* If your spouse or other family member goes with you on a bueinss trip, the expenses are not deductible unless they also work for your business and their presence has a real business purpose, too.

* A maximum deduction of $2,000 per individual each year is allowed for conventions held on U.S. cruise ships.

Please check with your tax preparer as your situation may be different than described.