Mixing Business & Pleasure: Travel Related Tax Deductions

Taking the family along on a business trip this summer? Learn how to save on your taxes and take the tax deductions you’re entitled to on your working vacation. It’s tricky to mix, but with the right mindset and careful planning, you can take advantage of some travel related tax deductions for business.

Working Vacations

If you’re attending a business conference or meeting in another city and bring along the family, you may still be able to deduct some of the expenses. There will be plenty of time to relax all together in the evenings. To make sure that you stay on the right side of the IRS, let’s review what you can and cannot deduct when traveling with family.

Business Trips: The Big Do’s and Don’ts of Tax Deductions

While a few extra days to hang out won’t disqualify tax deductions, you still have to be careful with what you claim.

Transportation: Renting a car and driving to the business meeting location. This will be tax deductible since the main purpose is for the conference. If you’re flying to a location, your ticket is tax deductible, but not your family (unless they are employees).

Hotel: If you’re sharing a room during the conference this expense is also tax deductible. However, if you had separate rooms, only yours would be eligible as a business expense. Please also remember that if you’re upgrading your room because of your family, then that’s not deductible.

Meals: Since you’re attending the conference your meals can be deducted (50%), but not your family’s.

Business Expenses: With traveling, you may be hit with some extra expenses like internet at the hotel, dry-cleaning (related to business), and taxis to and from the conference or business meetings.

As long as you claim travel expenses directly related to your business trip and don’t go overboard with your trip expenses you should be fine. While you can’t completely write off the trip, it’s nice to claim what you’re entitled to and save some money.

One of the best things you can do, is keep good records and track all of your expenses. If you’re not sure, save your receipts and your Dallas CPA firm will ask you simple questions related to your business and figure out your travel related tax deductions based on your answers when it’s time to file your taxes (enjoy the trip in the meantime!).

If you’re self employed you can also use QuickBooks Self-Employed to easily separate your personal expenses from your business expenses and track your tax deductible business expenses year round.