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Dylan Mitchell

Is it tax deductible to write off travel expenses and Airbnb stays when touring potential office space in another city?

So my business is looking at expanding to Charleston, SC, and I'm planning to fly out there to check out some potential office spaces next month. I'm wondering if I can legitimately deduct the costs of this trip on my taxes? Specifically the plane tickets (about $430 round trip) and a 3-night Airbnb stay (running around $650 total). I know business travel is typically deductible when you're meeting with clients or attending conferences, but I'm not sure how the IRS views travel specifically for scouting new business locations. Does anyone know if touring potential office spaces in another city counts as a legitimate business expense for tax purposes? This would be a 100% business-focused trip - I'm literally just going to look at properties and meet with some commercial real estate agents.

Yes, you absolutely can deduct those expenses! When you're traveling to scout potential new business locations, that's considered a legitimate business expense as long as the primary purpose of the trip is business-related, which yours clearly is. You can deduct 100% of your transportation costs (flights, taxis, etc.) as well as your lodging expenses like the Airbnb. For meals, you'll be limited to 50% deduction in most cases. Just make sure you keep detailed records of everything - receipts, calendar invites with the real estate agents, notes from property viewings, etc. The key is being able to prove the business purpose if the IRS ever questions it. One important distinction - if you extend your stay for personal reasons (like adding a weekend of sightseeing), you can only deduct the business portion of your expenses. But if it's purely a business trip as you described, you're good to deduct the whole thing!

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Dmitry Volkov

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This is super helpful but I'm confused about one thing - what if I'm an LLC but file taxes as a sole proprietor? Do these same rules apply or is it different? Also, do I need to keep physical receipts or are digital copies okay?

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The same rules apply regardless of your business structure. As a sole proprietor filing with Schedule C, you'll deduct these expenses just the same. The business purpose is what matters, not the business entity type. Digital copies of receipts are perfectly acceptable for IRS purposes, as long as they're legible and contain all the relevant information. I recommend using a business expense app that can organize everything by category for you, which makes it much easier at tax time.

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Ava Thompson

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Just wanted to chime in with my experience using taxr.ai to handle these exact kinds of business expense questions. Last year I was traveling between three states looking at potential warehouse spaces, and I wasn't sure how to properly document and deduct everything. I uploaded my receipts and trip notes to https://taxr.ai and it automatically categorized everything correctly and told me exactly what was deductible. Saved me from accidentally claiming things that would've raised red flags! They also provided documentation I could use if I ever got audited.

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CyberSiren

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How does this service handle mixed-purpose trips? I sometimes add a personal day when I travel for business and I'm never sure how to split the expenses correctly.

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Sounds interesting but do they actually review your specific documents or is it just generic advice? I've used tax software before that claims to check everything but it's really just a glorified calculator.

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Ava Thompson

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They provide personalized advice based on your specific uploaded documents, not just generic calculations. The AI analyzes your receipts and trip information to determine what's deductible based on your particular situation. For mixed-purpose trips, they have a special feature that helps allocate expenses properly between business and personal days. It breaks down transportation, lodging, and other costs according to IRS guidelines so you know exactly what percentage you can legally deduct.

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CyberSiren

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Just wanted to update after trying taxr.ai for my recent business trip to Chicago where I was looking at retail spaces! I was skeptical at first but decided to give it a shot. Uploaded all my receipts, flight info, and calendar showing my property tours. The service automatically categorized everything and even flagged that my extra night stay (which was personal) needed to be properly allocated. It generated a perfect expense report that my accountant said was exactly what he needed! Saved me hours of sorting through receipts and probably prevented me from making some costly mistakes too.

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Zainab Yusuf

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If you're trying to reach the IRS to confirm any of this tax deduction stuff about business travel, good luck! I spent THREE DAYS trying to get through to them to ask about some similar business expansion expense questions. After being on hold for hours and getting disconnected twice, I finally tried https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent within 45 minutes when I'd been unable to get through for days on my own. The agent confirmed exactly what I needed to know about deducting expenses for touring potential business locations.

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Wait, how does this actually work? They somehow get you to the front of the IRS phone queue? That sounds impossible with how backed up the IRS phone lines always are.

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Yara Khoury

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I'm extremely skeptical about this. There's no way some third-party service can magically get you through to the IRS faster than anyone else. The IRS doesn't give priority access to certain callers. Sounds like a scam to me.

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Zainab Yusuf

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It's not about cutting the line or getting priority access. What they do is use an automated system that continually calls the IRS using their technology, navigates the phone tree, and waits on hold for you. When their system finally reaches a human agent, you get a call connecting you directly to that agent. They don't have special access or arrangements with the IRS at all. They just handle the tedious part of repeatedly calling and waiting on hold, which can literally take hours. This is especially useful during tax season when wait times are ridiculous. It saved me from having to keep my phone tied up all day trying to get through.

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Yara Khoury

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I need to eat my words about Claimyr from my earlier comment. After continued frustration trying to get IRS clarification about some business travel deductions similar to what the OP was asking about, I decided to try the service out of desperation. I was still convinced it wouldn't work, but within about 35 minutes I got a call connecting me to an actual IRS representative! I was able to verify exactly how to handle deductions for scouting potential business locations, and the agent even emailed me documentation I can keep with my tax records. The time saved was absolutely worth it - I would have wasted an entire day otherwise.

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Keisha Taylor

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Just to add another perspective - I did something very similar last year when expanding my consulting business to Denver. My accountant advised me to create a specific folder for this expansion project and document EVERYTHING. Keep a log of all buildings you tour, take photos of properties, save email threads with real estate agents, etc. The more documentation you have showing this was legitimately for business purposes, the better position you're in if questioned.

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Do you think it's overkill to actually write a brief business justification for the expansion? Like a simple one-page document explaining why we're considering Charleston as a location? My accountant suggested it but it seems excessively cautious.

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Keisha Taylor

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Not overkill at all! Creating a brief business justification document is actually a really smart move. This doesn't need to be anything elaborate - just a one-pager explaining your business reasons for expanding to Charleston, what you're looking for in terms of space, and your rough budget/timeline. This documentation creates a paper trail establishing your business intent from the beginning, which is extremely valuable if you're ever questioned about these deductions. It shows you approached this as a legitimate business initiative rather than trying to write off what could otherwise look like a personal trip. Think of it as inexpensive audit insurance.

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Paolo Marino

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Don't forget about per diem rates! Instead of tracking every food receipt, you can use the standard meal per diem rates for Charleston which is much simpler. Still only 50% deductible though. Also remember your ground transportation (Ubers from airport to Airbnb to property sites) is 100% deductible. Keep a simple log of where you went each day.

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Amina Bah

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I use the GSA website to look up per diem rates when I travel for business. Is that the correct source or is there a different place specifically for tax purposes?

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Yes, the GSA website is exactly the right source! They publish the standard per diem rates that the IRS accepts for business travel deductions. Just look up the specific city (Charleston in this case) and use those daily rates. Much easier than keeping track of every single meal receipt, especially when you're focused on property tours and meetings with agents.

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Admin_Masters

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Great question! I went through something similar when I was expanding my marketing agency to Austin last year. Everything Sofia mentioned is spot-on - you can absolutely deduct those travel expenses since you're traveling primarily for business purposes. One thing I'd add is to be extra careful about timing. If you book your flights and accommodations well in advance and then end up not moving forward with the Charleston expansion for whatever reason, you can still deduct the expenses as long as you had a legitimate business intent at the time of the trip. The IRS looks at your intent when you incurred the expenses, not the ultimate outcome. Also, consider documenting your business plan or expansion strategy beforehand - even just a simple outline showing you've done market research on Charleston and identified specific business reasons for potentially expanding there. This helps establish that legitimate business purpose from the get-go. Safe travels and good luck with your property search!

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