As summertime nears, many people are beginning to make their summer vacation plans. With the increasing rise in fuel prices today, many are concerned about how they can actually afford going on a family vacation this year. What many don't realize is that they can write-off their vacation costs legally and have some summer fun at a fraction of the costs.
Quality time with your family is priceless. Many business travelers opt to add vacation time to their business trips and invite family to join them. And, if you're lucky enough to have your business trips in popular family-oriented destinations such as New York City, Los Angeles or Orlando, you can legally deduct a portion of the trip.
Did you know if you stay over Saturday night in order to receive discounted airfare rates, the Internal Revenue Service (IRS) will give you a tax break? In fact, the IRS will allow you to count the extra days as business days because staying over actually saves money on business travel. As a business traveler, you're legally allowed to deduct 100% of all transportation costs - as long as it's primarily related to business travel.
Transportation costs include airfare (yourself only), cabs from hotel to meeting destinations, tips related to business travel, and travel via railroad or car. You are permitted to deduct miles driven to and from your destination regardless of how many people were in the car.
Hotel costs are also allowed for deduction when you share a hotel room with family but you are only allowed to claim the costs for a single rate. You will need to have the hotel provide you with the single rate costs and be sure to get a receipt for tax purposes which clearly indicates this.
Daily out-of-pocket business expenses are eligible for deduction and include tips, 50% meals, and seminar or convention fees. Out-of-pocket expenses for personal use are ineligible for tax deduction purposes.
The IRS pays very close attention to any deductions claimed for business-related travel. Be sure to keep a detailed log of all travel information, including well-documented receipts. Always document the dates of travel, name, amount of time spent on business and reason for the business travel. A well-planned business trip can mean an affordable summer vacation for you and your family. Plan accordingly and enjoy some precious time with your family!
Sum of All Numbers partners with small businesses to provide customized financial and bookkeeping services. By implementing a team approach, Sum of All Numbers clients can focus on growing and managing their business while saving money without the overhead, payroll or hassles. For more information, call (510) 686-7986 or visit our website at www.sumofallnumbers.com/sign-up.html .
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