Once Memorial Day comes and goes each year, we are in the official summer travel zone. What plans do you have this summer? Have you discussed your travel plans with your tax advisor? If not, NOW is the time to do that. Before you travel!
Business travel income tax deductions have very specific rules attached to them so it is critical that you understand how those rules apply to you so that you can maximize your business travel income tax deductions this summer and keep more of your hard earned money. These tax deductions can put thousands of dollars back in your pocket with the right strategies.
- Travel expenses must be ordinary and necessary. They can’t be lavish, extravagant or for personal purposes.
- Travel by airplane, train, bus or car between your home and your business destination. Fares for taxis or other types of transportation between an airport or train station to a hotel, from a hotel to a work location.
- Lodging and non-entertainment-related meals.
- Dry cleaning and laundry.
- Business calls and communication.
- Tips paid for services related to any of these expenses.
- Other similar ordinary and necessary expenses related to the business travel -> this is my favorite one. Let’s discuss!
Most importantly, keep records, such as receipts, canceled checks, and other documents that support a deduction. I travel with a ziploc bag that I throw paper receipts into for later scanning when I get home. Pdf and or jpeg receipts are also acceptable. Under scrutiny, you will have to prove your expenses and their business prupose.
If you’d like to discuss your particular situation, I have 2 spaces available after June 15th for one on one consultations. Let’s make sure you take every tax deduction to which you are entitled.