Travel and transportation expenses can both give rise to a tax deduction. Travel, meals and lodging expenses incurred by a taxpayer while away from home for business purposes are deductible. Deductible travel expenses incurred while traveling away from home on business include meals (50%), air and baggage charges, transportation such as taxi, laundry cleaning and reasonable tips incident to the above expenses.To determine whether a taxpayer is away from home, the IRS has adopted the "sleep and rest" rule. This rule requires the taxpayer to prove that it is reasonable to need sleep or rest during release time to meet the demands of his business. Actual transportation expenses including the cost of getting from one location to another for business purposes paid even while not away from home in connection with business are also deductible.

Travel costs are divided into costs to and from the destination and expenses incurred while at the destination. It is not necessary for the trip to be 100% business related to deduct costs. If the primary purpose of the trip is related to the taxpayer's business, costs for travel to and from the destination are deductible and expenses incurred while conducting business are also deductible. Travel expenses paid for an individual who accompanies the taxpayer on business travel is not deductible unless the individual is an employee, has a bona fide business purpose for the travel, and would otherwise be allowed to deduct the travel expenses.

Expenses incurred staying on for personal purposes and non business expenses are also not deductible. If the primary purpose of the trip is personal, travel costs are not deductible however expenses incurred while at the destination are deductible if related to the taxpayer's trade or business even if the travel expenses might not be deductible.