Monday November 23, 2015
Let's do a quick "business travel expense review" so you can make sure to save yourself some money come April 2016.
In order to legally deduct 100% of travel expenses you incur this Holiday Season, you must meet these requirements:
Rule #1 Business Activity: The foundation for deducting travel expenses is thatthe travel benefits your business. There are many ways traveling outside of your city can be helpful to your business. Whether it is scouting out new rental properties or attending a conference or networking event - the possibilities are limitless, it just takes some planning on your end.
Rule #2 The Expenses:
- Transportation costs - personal car mileage, airfare, baggage fees & tips, cabs/Uber/Lyft, train tickets, rental cars
- Hotel tips
- Meals (still only 50%),
- Seminar & conventions fees
Rule #3 Your Deduction: Spend more than 50% of your time each day on business activities. This can includes things like checking email or having legitimate business discussions with family or friends.
Rule #4 Your Family's Deduction: Involve your spouse and children in business activity so they can spend 50% of their day doing business activities along with you. It could be a really fun bonding experience for all of you. But make sure they on board with the plans - if they are not, at least you can always deduct your portion of travel expenses.
Rule #5 The Location: There is no restriction on where in the US you can travel to. Whether it is to visit family or friends or to a location you've always wanted to go. As long as you have a business reason to go - it is fully deductible. NOTE: Traveling outside of the U.S. is a different set of rules. Talk to Laura about this if you would like to go international.