What Is the "IRS Publication 463: Travel, Entertainment, Gift, And Car Expenses"?


Quick Answer

IRS Publication 463: Travel, Entertainment, Gift and Car Expenses provides information on which business expenses are tax-deductible. The form is necessary for determining deductible travel expenses when traveling from home for employment or business purposes. IRS Publication 463 is filed by individual employees who are not fully reimbursed by their employer for out-of-pocket business-related travel expenses.

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Full Answer

Eligible categories for travel-expense deductions include transportation, entertainment, gifts and all common or necessary expenses as they relate to the traveler’s business or employment.

Deductions for travel, transportation, entertainment or gift expenses must be substantiated on Publication 463. The IRS requires business travelers to provide records, along with proof of reimbursable expenses as they relate to the underlying employer’s benefits plan. Appropriate documentary evidence to substantiate travel expenses includes receipts, bills or canceled checks. This evidence must be attached to Schedule C (Form 1040) and include the amount, date, place or description and necessary character of the purchase.

Traveling away from home, as defined by IRS Publication 463, occurs when an individual leaves her tax home for a period substantially longer than a work day as a result of business-related duties or obligations. Common examples of deductible travel expenses include: airplane, bus or train tickets; rental-car purchases; meals and lodging; dry cleaning and laundry bills; shipping costs; and fares for transportation between the station or airport and the traveler’s work location and/or hotel.

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