Are business class flights tax deductible?

Flying on business class flights offers great delight and gives you the opportunity to enjoy premium quality air travel. The cost of business class flights is usually four times higher than the price for regular economy flights but it’s definitely worth its cost.

Business class flights are definitely worth their price because of the variety of high quality services and amenities offered to business class passengers. They offer high level of comfort and privacy in comparison to premium economy or coach and for this reason the business class ticket price can go high.

 

Business class flights were originally created with the purpose to meet the needs of business travellers. They are really suitable for business travelers thanks to the comfortable upgraded seats available on these flights. Business class seats are adjustable and can become lie-flat beds offering passengers the opportunity to sleep during long-haul business class flights.

Business class flights offer high level of privacy of each passenger because of the seats arrangement where there is enough space between the seats. There is a quiet atmosphere in business class cabins which allows passengers to sleep or work without any problem.

No matter if you are travelling only on business, or you are planning to combine your business trip with your holiday travel, some of your main business related expenses can get tax deduction.

Frequently flying on business class can be pretty overwhelming, especially on long-haul flights. That is why many business travelers choose business class flights because of the high level of comfort and premium services, on-ground perks, quality customer service and special attention from the flight attendants on board.

But you can see other types of passengers on business class flights too. Families, couples or people who just want an additional comfort during their air travel choose to fly on business class.

The good news is if you are traveling on business using business class flights, then some of your existing business related expenses are tax deductible.

Travel expenses are tax deductible and  they are one of the most popular business expenses that are eligible to a tax deduction. They should be business related in order to get a tax deduction. But business travelers are often confused which business trip cost is deductible.

What is a tax deduction for airplane travel?

Tax deduction is a deduction which decreases a person’s tax liability by making his taxable income lower. Tax deduction includes air travel expenses made by the taxpayer during the year and these expenses are made with the purpose to obtain an additional income as a result of the business class travel.

These expenses are the costs you have when you travel far from your home for business purposes. Some of the expenses you make during your business trip are eligible for tax deduction.

Fortunately a part of these travel expenses offer you the opportunity to get considerable business expense deductions. Business related expenses are a subject to different rules. If you are a business traveler, you should follow these rules, otherwise you risk an unpleasant situation when you are audited.

All travel expenses that are made in relation to acquiring and starting a new business can’t get a tax deduction like travel expenses that are made for the purposes of already existing business. But you can classify expenses for starting a business as start-up expenses and some part of them can get tax deduction.

For example, if you are flying on business class together with your spouse, then the travel expenses of your spouse cannot get tax deduction. Their travel expenses can be tax deductible only if the person is an employee of the business.

 

Business class travel expenses fall in the category of tax deductible expenses. There are some business expenses that are considered tax deductible. Sometimes only half of the price can get a write-off. For example, if some of your business expenses costs 100$,50$ will be a tax that is deductible.

Depending on the circumstances there are several expenses that are tax deductable

Transport

The expenses you have for flying, traveling by bus, train or renting a car is tax deductable. Business class tickets, bus, train ticket costs are deductible. Every type of transport that helps you reach your business meeting or conference for example counts.

Parking tolls and fees also fall in this category. There is also a mileage rate deduction. Every business traveler can deduct 54.5 cents for every mile they drive. It matters whether your travel by a personal vehicle or you use a car rent. Your expense on gas and upkeep of your car are also deductible.

The transportation costs also include local taxi fares or other kind of transportation means between a hotel, station or an airport. The tax deductible transportation can be between one customer to another, from one business location to another and all the tips related to these travels.

Car upkeep includes operating and maintenance of a car, parking tolls and bills, the price for gas, oil, lubricants, car wash and repair bills, spare parts, tires and other.

These expenses also include operation and maintaining house trailers given you are using the house trailer for business. Don’t forget to get a receipt if you have tax rides.

 

•       Business dining expenses – your expenses on meals during your business travel can be deducted too. You can get 50% cost deduction for your dining expenses.
•      Accommodation expenses – some lodging expenses are also tax deductible such as hotel bookings. It’s recommended to ask for an itemized bill upon check-out because some hotel expenses aren’t eligible for tax deduction. These can be mini bar bills or movie rentals.
•       Luggage charges – your expenses for baggage when traveling on business class are also tax deductible.
•       Miscellaneous business trip necessities – any business trip includes different types of expenses that a traveler cannot go without. These can be fees for conferences, conventions in other cities and many other things.
•       Conference expenses – these expenses include conference ticket prices, event registration fees, presentation equipment rental, laundry or dry cleaning expenses for business clothing.
•       Transportation expenses for samples, sample room costs, display materials
•       Public stenographer fees
•       Cleaning and laundry expenses
•       Computer equipment rental expenses

What you should do in a situation where business travel is combined with personal trip?

It happens sometimes when business activities mix with tourism expenses and that’s natural. IRS (Internal Revenue Service) for example has the goal to find such taxpayers who attempt to classify the expenses of a personal holiday trip that are nondeductible  as business related expenses eligible for tax deduction.

Therefore, if you are flying to a place where you are going to perform business activities and personal vacation activities, then the expenses for your travel can get a tax deduction only if the trip is mainly related to your business operations.

One way to decide this is to consider simply how much time is spent on business activities during the business trip and how much is spent on tourism-related activities or instance.

What business class expenses are not tax deductible?

• If you are traveling with your whole family on business class, then the travel expenses aren’t tax deductible.
• Business travel-related expenses should be reasonable, necessary and common to be tax deductible.

To claim a tax deduction your travel expenses should agree with some business expense requirements

Travel expenses that are too lavish or extravagant aren’t tax deductible. To get a tax deduction, your business trip by plane should be far way and with long duration.

If your business travel expenses are unreasonable. This one depends on your personal assessment of the situation. If you think that some of your business travel expenses are unnecessary for the successful maintenance of your business, then you should not claim them for tax deduction.

It’s not recommended to risk getting caught trying to lower income with questionable business travel expenses during your audition.

There are other conditions regarding air travel tax deduction

 

 

All away from home business expenses are eligible to tax deduction. Expenses you make in a home city cannot be tax deductible. Your standard mileage rate and business meals are tax deductible.

More than one business location

For example, if you conduct your business at more than one location, then the total time you spend doing work in each place counts. You should also consider the type of business you have at each location and its level of development.

In a case where you don’t have a regular place or main spot to conduct your business, then you can be categorized as an itinerant. The place where you usually work is your tax home.

In the case of temporary assignments were you work temporarily for your business at a certain location, the tax home doesn’t change. Temporary period is considered a year or less.

It’s recommended to keep all your receipts during your business travel. So, when the time comes to get a tax deduction for your business expenses, you will easily file your receipts.

The last factor that deserves consideration is the relative amount of your income you gain at each of your business locations. You should determine what is your main and most important business location.