Combine Personal Pleasure with Business Travel

July 10th, 2016 at 9:25 AM

Let’s start with the definition of travel according to the IRS–you are away from home overnight or for a period time sufficient to require sleep. For example,  you live in Philadelphia, fly to Charlotte, NC in the morning, and return that evening. You are not “traveling”. You were not away from home overnight. In addition, your trip to Charlotte is classified by tax law as a non-travel trip; and you are only allowed to deduct your transportation costs–no meal expenses.

Travel expenses are divided into two categories:

• transportation expenses-costs include expenses in getting to and from your destination
• on the road expenses-all necessary costs to sustain life such as lodging, meals, dry cleaning, etc.

Tax Tip: No receipts required for travel expenses under $75 per expense with the exception of lodging.

Note:I am not suggesting that you deduct any amount if under $75–if you spend $30, then you can deduct $30, subject to any limitation, such as food. Do not ADD more in expenses than you spend! Always be accurate and honest.

The primary purpose of the trip must be for business–specific business purpose BEFORE you go on the trip.

In reference to the expenses, there are several overall tax  strategies to increase your travel deductions and add more pleasure. I will only mention a few here of the 15+. They are as follows:

• hire your spouse
• deduct dirty clothes
• use your business car for family travel
• drive 300 miles a day toward your business destination
• make weekends tax deductible

This is just one area of business expenses that can be examined to uncover thousands of dollars of tax savings.