A hotel on a business trip belongs on Line 24a, travel.
Why line 24a
Lodging is a travel expense and goes on line 24a at its actual cost, including the room rate, the occupancy and sales taxes and the resort fee. It is deductible only for nights you were away from your tax home for business, so a seven-night bill on a trip with four business nights is deducted for four nights. Charges that arrive on the same folio are split by what they are: room service dinner is a meal, the hotel gym day pass is personal, in-room internet you used for work is a business cost.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a hotel on a business trip lands on Line 24a without you sorting it.
Start for freeWhat a hotel on a business trip is confused with
- Line 24b, deductible meals
- The room and its taxes are line 24a in full; meals billed to the room are line 24b and limited to 50 percent, so ask the desk for an itemised folio.
- not deductible, not deductible
- Nights you stayed on after the business was finished, and a companion's share of a higher room rate, are personal and not deductible.
- Line 20b, rent or lease of other business property
- A hotel night on a trip is travel; a room or apartment you take on a long-term indefinite basis at a new location is not travel, because that location becomes your tax home.
Examples that belong on line 24a
- $318 for two nights at a Hampton Inn near a client office
- $47 of occupancy tax on a three-night conference stay
- A $22 a night resort fee on a trade show hotel
- $640 for four nights at a job site 300 miles away
- $130 for one night after a late client dinner too far from home to drive back
What does not belong here
- A hotel near home booked because it was convenient rather than necessary.
- The extra cost of a suite taken so family could come along.
- Nights added to the end of the trip for a weekend away.
- Meals charged to the room, which go on line 24b at 50 percent.
The limit that applies
Lodging must be deducted at actual cost. A self-employed taxpayer cannot substitute the federal per-diem lodging rate.
What to keep
Keep the itemised folio, not just the card charge, because the folio is what separates room, tax, meals and incidentals. Write the business purpose and the client or event name on it while you still remember the trip.
Other expenses on line 24a
| Expense | Line |
|---|---|
| a flight to a client site | Schedule C, Line 24a |
| a per-diem claim for lodging | Schedule C, Line 24a |
| a rental car on a business trip | Schedule C, Line 24a |
| a trip that mixed business and holiday | Schedule C, Line 24a |
| airport parking | Schedule C, Line 24a |
| an Airbnb for a work trip | Schedule C, Line 24a |
| baggage fees | Schedule C, Line 24a |
| international business travel | Schedule C, Line 24a |
| laundry and dry cleaning while traveling | Schedule C, Line 24a |
| train and Amtrak fares | Schedule C, Line 24a |
| Uber and Lyft rides on a business trip | Schedule C, Line 24a |
Related lookups
- Where does a client lunch go on Schedule C?
- Is a car payment deductible on Schedule C?
- Where does office rent go on Schedule C?
Sources
- Topic no. 511, Business travel expenses
- Publication 463, Travel, Gift, and Car Expenses
- Instructions for Schedule C (Form 1040)
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a hotel on a business trip lands on Line 24a without you sorting it.
Start for free