Summary: How would you like to take a fabulous trip to an exotic destination and have Uncle Sam pay the bill when you return home? No, it’s not an illegal scheme that will get you in trouble, but a clever hack that allows you to travel around the world for practically nothing. When it comes to traveling, entrepreneurs have the ability to mix business and pleasure. And, here’s the beauty of it: you don’t have to be the CEO of a fancy startup to benefit from tax deductions on your travel expenses. You can turn your blog or passion for photography into a business and write off expenses. For example, if you’ve set up a business for you travel blog, now you can go anywhere in the world and file all expenses on your taxes as a business expense. After all, you’re going there for business reasons – to create new content for your blog. If you’re new to the business world, complying with the tax code may feel like navigating a maze. But, it becomes less complicated once you know what you can write off and what not. For starters, you must ensure that the primary reason for your trip is for business. Otherwise, it would be hard to justify a 7-day trip to the Bahamas when you only have one day of meetings. A clever trick would be to count up the number of business and personal day on your trip. Keep in mind that the majority of days should be for business activities. For example, you could fly to the Bahamas on Thursday, have a meeting on Friday, stay and enjoy the weekend, meet with other clients on Monday and Tuesday, and fly back home one Wednesday. Another thing that you should keep in mind is that you can’t just fly to the Bahamas with a stack of business cards in your wallet and call it a business trip. According to the IRS, you need to have at least one business meeting scheduled before you leave. Otherwise, you won’t be able to write off your expenses. Which Expenses Are Deductible? Here are some of the business travel expenses you can write off your tax bill: Transportation Costs You can deduct 100% percent of your transportation costs, whether we’re talking about bus, car or air travel. Be careful, though: you need to choose the appropriate option to be able to deduct your taxes. While flying first class is admissible, you don’t get away with deducting a two-week cruise you took to arrive at a business meeting. Also, keep in mind that according to the IRS, your home is your regular place of business. So, if you work between Monday and Friday in New Hampshire and fly to South Carolina to be with your family during the weekend, you can’t deduct your travel expenses. Lodging You can claim your accommodation entirely. Don’t forget to ask for an itemized bill when you check out from your hotel. Some costs, like movie rentals or goods from the mini bar, might not be eligible for tax deduction. Meals You can deduct 50% of the cost of meals related to your business travel needs, tips and tax included. If you’re meeting with a client over dinner, you will have to document what business related topics you’ve discussed to pass the audit. Other Expenses Other costs that you can write off include conference fees, equipment rental, dry cleaning and laundry, shipping luggage, business calls, renting a location for a presentation, and registration fees. Website: ianbalina.com Instagram: www.instagram.com/diaryofamademan/ Twitter: twitter.com/diaryofamademan Snapchat: www.snapchat.com/add/diaryofamademan Facebook: www.facebook.com/diaryofamademan/
