Tuesday November 14, 2017
Turkeys are not the only thing that can gobble. Taxpayers can gobble up some tax savings on travel expenses. 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 that the 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:
Rule #3 Your Deduction: Spend more than 50% of your time each day on business activities in order to be able to deduct your travel expenses.
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: If traveling outside of the U.S. - a different set of rules applies.
Schedule your appointment Today! Let's discuss your retention periods and review your financial information, discuss questions, and go over your individual tax and business related matters. Be prepared!