Monday, 11 May 2015

How your vacation helps you in tax deduction

There are many ways of tax deduction but many people prefer vacation. Here’s how they do it.
You need to make all your business appointments before you leave for your trip. Most people believe they can go on vacation and in the end they hand out their bill and get deductions. But you must have at least one business appointment before you leave in order to make it looks like business purpose. You can set up business appointment with your business colleagues in the various cities that you plan to visit.

You need to make sure that your trip is all business trip. You can deduct all your on-the-road expenses only when you are travelling on business. Suppose you go to a regional meeting which is only two-hour drive from your home. If you have some problem there like traffic problem and you need to sleep for one night then that expenses also count in business travel.

You need to make sure that you are deducting all your on-road-expenses for each day you are away. For every day you are on business travel, you can deduct 100 percent of lodging, tips, car rentals, and 50 percent of your food.

Suppose you have a weekend between your business days. If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.

Make the trip days count as business days. You can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities.

To make sure that you can legally deduct your vacation when you combine it with business, call the office before you plan your trip.


It is good to take advice from tax advisor before you plan such an event.

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