Business, Ask An Expert.
Are tavel expenses tax deductible? - many of us wonder, are travel expenses tax deductible? or is there any way for me to take a vacation and write part of it off? The IRS allows you to deduct a part of your travel expenses if your vacation is related to your business or will enhance your business. Well the answer to that is yes if you do it right.
So if you are attending a business meeting somewhere or a conference that will enhance your business you can qualify for a deduction. - now there is a right way and a wrong way of doing this. Why do you think so many seminars and conventions are held in Las Vegas or Orlando? You must document why you are going to that location and keep your receipts. For example, a friend of mine is a hypnotist. Also you should choose a seminar, convention or meeting that you could not easily duplicate in your home town. There aren' t many hypnosis shows in Orlando but there are a ton of them in Vegas.
Another friend of mine helps design theme park events and creates special effects for large company promotions. - if he was going to vegas to learn more about how to conduct a hypnosis show to enhance his business then all the hypnosis shows that he attended in vegas should be tax deductible. His trips to Disney land are probably tax deductible because he creates illusions similar to what Disney creates. So Dell could send their employees to a sales seminar and their employees could deduct many of their expenses. Convention and business travel expenses are deductible whether you are self - employed or employed by another company. Or if you as an individual needing some extra training to further your career or business you could write off these expenses, as well.
So if you were going to a training class like World Capital Institute in Orlando holds for those that wish to enter the Stock and Commodities field as a broker then that would be deductible, but if you were going to a seminar to learn how to trade stocks for your personal use then that would not result in a tax deduction. - the thing to remember is that the seminar must enhance your career or business. Time is a factor in determining whether the IRS will consider your trip business related. So if your convention is four days you should spend no more than an additional 2 - 3 days seeing the sights. You should spend the greater portion of your time in the seminar or meeting clients than you spend frolicking. Now what can be deducted: 1) If your trip is primarily for business, then you can deduct your travel expenses air fare, etc, taxis. Or if you are going to meet a potential client, then you should have this appointment set before making your travel arrangements.
So make sure that you have your convention or class paid for before booking your flight. - now if you are going to see a client, get that meeting in writing so that you have proof. Remember to consult with your accountant before taking your next business trip to make sure that you are going about it properly and to make sure that the rules have not changed. Write to him to set your appointment and have him write you back confirming the appointment. 2) Any meals, etc, hotels. during this business trip can be written off, as a cost of doing business. Taking a business vacation and reaping the benefits is easy, if you know how to play by the IRS' s rules.