Personal vs Business Trip
- The number of business days must exceed the number of personal days for travel to be considered to be primarilyfor business purposes.
- If the number of business days is equal to or less than the number of personal days, travel is considered to beprimarily for personal purposes
- *Traveler spent 5 business days and 4 personal days – the travel is considered primarily for business.
- *Traveler spent 5 business days and 5 personal days – the travel is considered primarily for personal.
- *Traveler spent 4 business days and 5 personal days – the travel is considered primarily for personal.
- Days spent primarily on business activities
- Days where the traveler was required to be in that location on that date for a business purpose
- Travel days to and from the business destination contiguous to a business day where the overnight stay is reasonable and necessary. Non-contiguous travel days are not included in the calculation.
*** Travel Day is given only when an overnight stay is necessary and reasonable.
- No, so long as travel business days are equal to or greater than personal days.
- Travel days that are not contiguous to business days are not included in the calculation of travel days versus personal days. See page 1: What days count as business days for domestic travel?
- What can be reimbursed for travel primarily for business purposes?
- Cost of transportation to and from the business destination, at lowest cost
- Personal days cannot increase the cost of transportation
- If travel occurs with personal days in between business days, only the cost of transportation directly back to Houston will be reimbursed (airfare, train, mileage)
- Actual Meals during business days and necessary travel days.
- Hotel costs for business days (note – hotel costs are associated with the night before; i.e., if the conference is all day Monday and ends in the late afternoon on Tuesday, in most cases hotel for Sunday and Monday would be reimbursable)
- Incidentals, tips, and other business expenses that are ordinary and necessary
- No costs will be reimbursed for travel days that are not contiguous to a business day, other than the cost of transportation directly back to Houston.
What can be reimbursed for travel primarily for personal purposes?
- Business expenses incurred during the trip that are directly related to the business. For example, a conference registration and hotel costs during the conference only
Source: IRS Publication 463