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Business travel and per diem

ExploreIRC §162, §274For business owners

Explore: well supported, often missed.

When business takes you away from home overnight, the cost of getting there, where you stay and what you eat is deductible. For meals and small expenses, you can skip saving every receipt and use the federal per diem rate for the city you're in.

The rules turn on one question: was the trip mainly for business? On trips that mix business and vacation, the business days count and the vacation days don't.

How it works

Travel away from home overnight for business is deductible: airfare, lodging, and meals. Instead of saving every meal receipt, you can use the federal per diem rate for meals and incidentals.

What makes it hold up

Risks

Low to moderate. Trips that are mostly vacation are the usual problem; on mixed trips, count only the business days. Business meals are generally 50% deductible.

Questions to ask your CPA

Common questions

What can I deduct?

Airfare or mileage, lodging, meals, and incidental costs while away from home overnight for business. Business meals are generally 50% deductible.

How does per diem work?

The government publishes daily rates for meals and incidentals by city. Your company can pay you that rate for each business day instead of reimbursing actual receipts.

What about a trip that is part vacation?

If the trip is mainly for business, the travel there and back counts, along with the costs of the business days. Costs on vacation days don't.

Can I bring my family?

Their costs aren't deductible unless they work for the business and have a real business reason to be there. Your own share still counts.

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Education, not advice. Tax law changes and every situation is different, so confirm the details with your CPA or tax advisor before acting. This page was last checked against tax law as of October 2026, including the 2025 tax law, in October 2026.