From the Professionals at Plack Group
Here is some helpful information on how to document expenses during business travel.
Corporation or proprietorship?
- If you operate as a corporation, the corporation should reimburse you for the travel expenses or pay for them directly.
Tax diary for business travel?
- Keeping a timely record of your business travel expenses is essential.
- Prove each expenditure’s amount, time, place, and business purpose.
Travel meals versus other travel expenses?
- A maximum of 50% of the cost of a travel meal can be deducted.
- Separate meal costs from other travel expenses.
Receipts.
- Retain a receipt or similar documentary evidence for every lodging expense and any other travel expense over $75. (Best practice is to keep all receipts, regardless of the amount.)
- A receipt should establish the expenditure’s amount, date, place, and essential character.
Credit card statements and canceled checks.
- These can’t serve as a receipt, as they only prove payment, not the purchase.
- Both receipt and payment proof are required to substantiate travel expenditures.
Timely kept records.
- The IRS considers a weekly or more frequent log of your activities and expenses as a timely kept record.
What are deemed travel expenses?
- They include costs of travel to your business destination and costs for sustaining life at the destination. (Lodging, meals, communication, laundry, etc.)
Submitting expenses to your corporation.
- Submit your expenses for reimbursement under an “accountable plan”.
- Submit an expense report along with the supporting receipts for reimbursement.
Final Note:
Proper documentation is key to ensuring that your business travel expenses are fully reimbursable and comply with IRS regulations. By keeping detailed, timely records and submitting your expenses through an accountable plan, you protect both yourself and your business from potential tax issues. As of July 2025, recent tax legislation (such as the One Big Beautiful Bill Act) has not changed these rules. Continuing to follow the established guidelines for substantiating travel expenses will keep your business on solid footing and ready for any audit or inquiry. Please contact your tax professional for any specific questions you may have regarding your particular tax situation, or reach out to us at [email protected].
Plack Group: Who We Are
Founded on a simple yet powerful principle – helping people – Plack Group is more than just an account firm. We create effective solutions that embody your core values and beliefs. From our home in Bel Air, Maryland, we’re proud to serve kind and dedicated clients across the United States.
We’ll say what others might not: we love our clients. Our commitment extends far beyond tax returns and financial analysis. We offer the same thoughtful guidance and strategic advice we’d give our own family.
At Plack Group, we take a highly personalized approach to helping our clients succeed. No two businesses or people are alike, so why would we treat them that way? We specialize in complex tax scenarios for individuals and business owners. Our experienced team of CPAs, accountants, and consultants find solutions and tax strategies others miss. If you’re a high-achiever, forward-thinker, actively engaged in your business, and want to prioritize your family, Plack Group is your right fit. We work with you to create a strong financial future that reflects your personal faith, values, and beliefs.
