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If you incur unreimbursed expenses while traveling away from home on business, you are generally entitled to deduct the cost of your travel expenses, within certain limits. But the tax law imposes strict substantiation requirements. In a new case, Near, TC Memo 2020-10, 1/14/20, the Tax Court denied a deduction because the taxpayer didn’t establish the requisite relationship between his business and the travel expenses.

Background: Generally, if you’re self-employed, you can deduct ordinary and necessary expenses incurred when traveling on business. This includes transportation costs back and forth from your business destination, as well as any business-related expenses at your business destination, such as lodging. The full amount is deductible if the trip is completely business-related.

However, the IRS often challenges deductions for travel expenses that are not properly substantiated.