Maximizing Deductions – Travel Expense – LNK Tax Group
Business travel is allowed for several reasons for business owners. Often business owners are reluctant to take travel deductions for business or are unaware with more simple strategies, they can deduct travel combined with vacation.
Travel for new business. Traveling to identify new locations, potential M&A or to acquire new investment property is all deductible business travel. Travel to & from the location, in addition to costs (lodging, ride share, etc.) on days that business or meetings are conducted are all deductible.
Conferences & Seminars. Travel to attend conferences and seminars is also deductible, and vacations can often be tacked onto these trips. Travel to and from the location for the participants is deductible, as is lodging for conference/seminar nights. However, non-business and non-conference days are not deductible.
Board Meetings. Board meetings in resort locations can be deductible with clear business purpose and a reason for why they can not be held at the business primary location. For example: enticement for board members to attend.
Travel costs for spouses and children are typically non-deductible, however, if they are involved in the business and have a business purpose for attending, the travel may be deductible. For example, a child who functions as video-grapher for the CEO and travels for that purpose would be deductible.
Tax Savings Range:
Depends on cost of travel but beware of luxury limits.
Our Thoughts:
At LNK Tax Group, we pride ourselves on making sure you have the most amount of money in YOUR pocket (legally, of course). Maximizing your deductions can be difficult so book a free 20 minute consultation with LNK Tax Group and let us help!
Disclaimer:
To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Always seek advice based on your particular circumstances from an independent advisor.