As a business owner, you may try to turn your vacation into a business trip so you can deduct some of the expenses that you will occur while you are away. As long as you set up a few business meetings before you leave, you can still spend time relaxing and enjoying the sites during your business trip.
Once you decide to call it a business trip, you need to look into your expenses so that you can deduct as many as possible. Here are some expenses that you can deduct on your vacation turned into a business trip.
Expenses to Deduct on Your Business Trip
1. Travel costs. This includes airplane, train, or other forms of transportation. If you use a ride-sharing service, you need to keep track of this also.
2. Vehicle expenses. If you rent a car, you can deduct this, as well as any other vehicle expenses that you may have on your trip.
3. Driving expenses. If you are driving there and back, you can deduct fifty-cents for every mile that you drive. You can also deduct fifty-cents for every mile that you travel to and from meetings.
4. Hotel and other lodging costs. This includes hotel rooms, condos, and even Airbnb rentals. However, you can only deduct the days that are considered business days. You can’t deduct your entire trip.
5. Meals.You can deduct up to fifty percent of your food and beverage expenses, though you can’t go overboard. You can’t deduct the most expensive bottle of wine. That is a little excessive. You also can’t pay for your entire family’s meal, just yours. However, if you take out some colleagues, you can deduct the entire meal for everyone.
Want to Learn More?
If you want to make the most of your vacation and business trip, you need to deduct as much as you can. Don’t forget about your travel and vehicle expenses, as well as your lodging.
Contact us to help you figure out what expenses you can deduct from your vacation and business trip.
Tax Tips for the Self-Employed
An Overview of the Net Operating Loss Tax Provisions in the CARES Act
How To Decrease Your Small Business Debt? A Step-By-Step Guide
Why Every Small Business Needs a Bookkeeper?
Tax Credits That Could Benefit Small Businesses
Why You Should, and Shouldn’t, Apply for a Tax Extension