When Travel Expenses Can Be Deducted: A Quick Review

To maximize the deduction for travel expenses, keep in mind the expenses that generally can be deducted while traveling away from home:

• Transportation fares or the actual costs (or a per mile rate) of using your own vehicle (including transportation costs of getting around in your work area, e.g., to and from hotels, restaurants, offices, terminals, etc.) 
• Lodging 
• Baggage handling 
• Meals (subject to a 50% limit) 
• Expenses of entertaining business contacts (subject to a 50% limit) 

Gratuities related to the above expenditures are also deductible (subject to the 50% limit for gratuities connected with meals and entertainment). 

• Phone and fax charges
• Laundry

On the other hand, the following expenses cannot be deducted:

Costs of commuting between your residence and a work site. 
These costs may be deductible if your residence is also your business headquarters. 

Travel as education 
Job hunting in a new field or looking for a new business site 
The T&E provisions are, of course, more complex, but the above discussion will serve as a basic review of the rules.