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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