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2 Copyright Â© 2014 Deloitte Development LLC. All rights reserved Agenda Tax Deductibility of Travel, Meals and Entertainment ExpensesDocumentation RequirementsPotential for Income Inclusion with Regard to EmployeesCurrent IRS Examination Trends Q&A.
This is because these costs are regarded as capital costs and are therefore not tax deductible. Where the travel overseas relates to servicing existing customers or product lines the cost will be tax deductible. There are two possible ways in which these travel costs can be claimed as a tax deduction. The first is to claim all costs as a business expense with the relevant substantiation documentation.