Skip To Page Content

Tax Deductible Travel Benefits For the Corporate Owner

As an Owner of a Corporation there are ways to take tax deductible travel benefits. Remember you are an employee of the corporation and it is a separate legal entity from you its owner.
Here are two possible scenarios –

If you pay for the travel expenses personally you should submit an expense report and be reimbursed by the business. This added documentation assists in proving that this keeps the separation of the business and the owner.

If you do not get reimbursed by the business and want to take a tax deduction for the travel you are required to file form 2106 which limits the amount you can claim as a deduction.

The final option is to have the business pay for all the travel expenses on a corporate credit card or debit. I prefer this method of cash as cash is harder to document during an audit with the IRS.

The Business Travel Documentation –
Business travel needs to answer the following questions to be substantiated:
1 Where – Your travel destination city.
2 Date – Your dates of departure, return and days on business.
3 Amount- The amount of each expenditure for travel by category.
4 Business purpose – The business purpose or the benefit (expected) derived.
We have available on our forms page a business travel worksheet.

Business Consultation Service

Posted on by LBS Tax
Tax Deductible Travel Benefits For the Corporate Owner

Comments are closed.

Explore Other Posts

|

Share:

Tumblr
Pin it
Have You Signed Up For Our Weekly Newsletter?
Subscribe to our weekly newsletter so LBS Tax can keep you up-to-date with the latest news
We respect your privacy.
Please make sure to check your email and confirm your subscription
to receive our weekly newsletter.