It was David’s first trip to New York, it was a business trip and his clients had specifically advised him not to use the subway. Being new to the city he was a little confused and also worried about getting mugged, lost or even stranded in Manhattan. A New Yorker and a friend of David’s recommended traveling on the subway to meet his client. According to him subway was the quickest and cheapest way to reach anywhere. David followed his advice and never felt sorry for it.
It may not be too expensive to use cab for your business travel as you can claim tax relief on important business travel expense. Money spent on air tickets, car hire, hotel and meals including the tips you pay will be included as your travel expense. The business travel can be for a number of reasons but should be for your business requirement. If you have spent money on attending conventions you can claim deduction. Remember, wasteful expense will not get you tax relief.
There is a big population which lives in one city and works in another. They cannot make claim for deduction if the travel involves going to the city where the family stays as this is not for business. For exemption travel has to be business related.
Maintaining records is very important for any money spent by you and this applies for business travel expense also. It is important to keep in writing the details of your travel like where, when and how much money was spent on what. These records will prove very helpful when and if IRS wants to scrutinize your case. You can opt for meal allowance which will save you the trouble of keeping records of all the meals you have.