The 4-1-1 on Self-employed Deductions

Photo of author

( — July 15, 2015) Millbury, MA — It’s never been easier for small business owners and self-employed individuals to work remotely. Yet the benefits from working at home extend beyond a very, very short commute. There are also tax deductions that can make working from home beneficial even when you’re not there.

“Tax law allows you to deduct two types of travel expenses related to your business, local and what the IRS calls “away from home,” said Paul Dion, owner of Paul Dion, CPA in Millbury, MA and Newport, RI. “You can deduct local transportation expenses incurred for business purposes such as the cost of getting from one location to another via public transportation, rental car, or your own automobile. Meals and incidentals are not deductible as travel expenses, but you can deduct meals as an entertainment expense as long as certain conditions are met.”

Self-employed and small business owners can deduct one-half of the cost of meals (50 percent) and all of the expenses of lodging incurred while traveling away from home. The IRS also allows you to deduct 100 percent of your transportation expenses–as long as business is the primary reason for your trip.

“Many self-employed people don’t take advantage of many of these deductions. For example, deducting 50 percent of a meal they were going to eat anyway,” said Dion. “But these deductions are part of the tax law and taking advantage of these deductions is really just a matter of proper documentation.”

Adds Dion, “Expenses are directly related if you can show there was more than a general expectation of gaining some business benefit other than goodwill.”

 To that end, he advises keeping a tax diary of your expenses to audit-proof your records. Adequate documentation includes amount, date, place of meeting, business purpose for the expense and business relationship.

For more information on deductible small business travel expenses, you can call Paul Dion CPA at (508) 853-3292 or visit

About Paul Dion CPA

ABOUT PAUL DION, CPA Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit. Clients save money and sleep well as night. Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction. For a free book, more information or a complimentary consultation, please visit or contact Paul Dion CPA, via or (508) 853-3292. Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA 01527.

Paul Dion CPA

22 West Street, #6, Felter’s Mill
Millbury, MA 01527
United States