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¶6545 Travel Expenses Travel expenses of self-employed taxpayers are deductible for AGI as trade or business expenses. Unreimbursed employee travel expenses are deductible from AGI, subject to the 2 percent floor applicable to miscellaneous itemized deductions. Travel expenses are defined for tax purposes as costs incurred while away from home in the pursuit of a trade or business including employment activities of an employee. Travel expenses include transportation expenses, 50 percent of business meal costs, lodging expenses, and other incidental expenses such as laundry and dry cleaning expenses. Combining Business and Personal Travel A person may combine personal activities such as sightseeing with a business trip. If the primary purpose of the trip is business, travel expenses including all transportation expenses are deductible as business expenses even though some time is spent on personal activities. Any direct costs associated with the personal activity, however, are not deductible. If the primary purpose of the trip is personal, travel expenses are not deductible even though some business activities are conducted during the trip. Substantiation of Travel Expenses Taxpayers must substantiate expenditures for travel and transportation expenses by adequate records or by sufficient evidence corroborating the taxpayer’s statements as to (1) amount, (2) time and place, (3) business purpose, and (4) business relationship to the taxpayer. In lieu of substantiating actual travel-related meal and lodging costs, employers and employees may utilize optional IRS per diem allowances. ¶6560 Moving Expenses Under Code Sec. 217, a deduction is allowed for moving expenses paid or incurred in connection with the commencement of work by a taxpayer as an employee or as a self-employed individual at a new principal place of work. Time and Distance Requirements In order for moving expenses to be deductible, the taxpayer must satisfy both time and distance requirements under Code Sec. 217. The time requirement states that an employee must work full-time at the new job location for at least 39 weeks in the 12-month period following the move in order for the moving expenses to be deductible. If self-employed, the taxpayer must work in the new location for 78 weeks during the two-year period following the move for the expenses to be deductible with 39 of the weeks required to be in the first 12 months. The distance requirement states that the distance between the taxpayer’s old residence and new job location must be at least 50 miles farther than the distance between the old residence and the old job location. If the taxpayer has no old job location (new worker, unemployed), the distance test is met if the new job location is at least 50 miles from the old residence.