Final answer:
Taxpayers who meet certain tests can deduct expenses related to business travel, specifically mileage using the IRS rate or actual expenses, reasonable lodging costs, and 50% of business-related meal expenses.
Step-by-step explanation:
If a taxpayer meets the two tests described in the previous question, the expenses they may deduct can fall under several categories, such as mileage, lodging, and meals. Each of these categories has specific rules governing what can be deducted. For mileage, taxpayers can deduct costs using either the standard mileage rate set by the IRS or actual car expenses. For lodging, expenses can be deducted when traveling away from home for business purposes, provided they are reasonable and not extravagant. Meals can also be deductible, but usually only 50% of the meal expenses can be claimed, and again, this is as long as they are business-related and not lavish or extravagant.