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2005 Tax Year |
Keyword: Travel Expenses
This is archived information that pertains only to the 2005 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
What form and line do I deduct the standard mileage rate for my
business travel and do I need to figure depreciation of the vehicle, too?
A Sole Proprietor's business use of a car or truck is claimed on line 9
of Form 1040, Schedule C (PDF), Schedule
C, Profit or Loss from Business or, if eligible, line 2 of Form 1040, Schedule C-EZ (PDF), Net Profit from Business.
You may use either the actual expense method in calculating your car or truck
expense or, if eligible, the standard mileage rate. Depreciation expense is
already included in this standard mileage rate. Depreciation is only calculated
as a separate expense when using the actual expense method. Deductible employee
business use of a car or truck may be taken on Form 2106 (PDF), Employee Business Expenses , or if, eligible, line
1 of Form 2106-EZ (PDF), Unreimbursed Employee
Business Expenses. The car and truck expenses are then taken with other
employee business expenses on line 20, Form 1040, Schedule A&B (PDF) Itemized
Deductions . For more information, refer to Publication 463, Travel,
Entertainment, Gift, and Car Expenses , and Publication 535, Business
Expenses .
References:
- Publication 535, Business Expenses
- Publication 463, Travel, Entertainment, Gift, and Car Expenses
- Form 1040, Schedule C (PDF), Profit or
Loss from Business (Sole Proprietorship)
- Form 1040, Schedule C-EZ (PDF), Unreimbursed
Employee Business Expenses.
- Form 2106 (PDF), Employee Business Expenses
- Form 2106EZ (PDF), Unreimbursed Employee
Business Expenses
For business travel, are there limits on the amounts deductible
for meals?
Meal expenses are deductible only if your trip is overnight or long enough
that you need to stop for sleep or rest to properly perform your duties. The
amount of the meal expenses must be substantiated, but instead of keeping
records of the actual cost of your meal expenses you can generally use a standard
meal allowance. The amount allowed varies, depending on where and when you
travel. Refer to Publication 1542, Per Diem Rates (For
Travel Within the Continental United States), for per diem rates.
Generally, the deduction for unreimbursed business meals is limited to
50% of the cost that would otherwise be deductible.
For more information on business travel expenses and restrictions, refer
to Tax Topic 511, or Publication 463, Travel, Entertainment,
Gift, and Car Expenses, and Publication 1542, Per Diem Rates .
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