Your summer trip can save you at tax time

Would you like to take a tax-deductible vacation this summer? That can’t be possible, right? Well, there is a way that you could embark on a trip or vacation and end up saving money come tax time. if you are autonomous. While you can’t just take your family to Disney World for the week and deduct the entire trip, if you plan carefully, you can find a way to get a tax break on part of your trip.

If you know of any conferences, trade shows, either other online events with your business, you probably understand that these trips may be deductible. So why not combine a business trip with a leisure trip? That’s right, if you have an annual industry conference on the other side of the country, you can plan your trip carefully so that you can not only attend the conference, but take a family vacation as well. This does not mean that the family can accompany her tax free, but that is how it works.

You can deduct expenses that are “ordinary” and “necessary” for your trade or business if you are self-employed. If you are self-employed and attending an event is considered ordinary and necessary for your line of work, you will qualify for a deduction. For example, if your business is selling widgets and there is an annual widget expo that highlights all upcoming widgets, attending this event would be considered ordinary and necessary for your line of work, and costs incurred to attend the event might be deductible.

Now, let’s say it’s an expo in Florida and you’re considering taking the family on vacation this summer. If you plan to attend the expo anyway, why not bring the family and spend time together in Florida? You can attend the event, your family spends time in Florida, and you are eligible for some tax deductions.

What you can deduct

Attending and traveling to events like these comes with many possible deductions. To get started, you can deduct registration fees and any materials needed to attend. If you need to travel, you can deduct the costs associated with getting to the event. This includes round-trip airfare, car rental, mileage using your own vehicle, public transportation, etc. In addition, you can deduct accommodation expenses. Finally, you will be able to deduct meals, but as you know, business meals are only 50 percent deductible.

What you can’t deduce

If you bring the family, unfortunately, your individual expenses cannot be deducted. That means if your family of four is flying, you can only deduct your personal airfare. And if you take the family to do things that are not related to the event you are going to attend, obviously they cannot be deducted. Finally, you also cannot deduct expenses incurred for things that occur beyond the event time. If you attend a three-day conference but stay with your family for a full week, you cannot deduct the other four days for lodging, meals, etc.

But one thing that can be a benefit is accommodation. Most of the time, the rate for a hotel room will be the same whether it’s just you staying in it or your whole family staying there, so you could, in effect, get a tax break as long as your whole family stays. your family stays with you.

Also, most entertainment expenses are not deductible at all.

Planning and record keeping

As you can see, it’s possible to turn a business trip into a family vacation that could net you some nice tax breaks while you get your family out of the house. The key is careful planning and record keeping. You’ll want to make sure the event you’re interested in qualifies as ordinary and necessary for your line of work first, and then, if it does, work to structure the trip so you can maximize your time and possibly earn a little money. trip out of it. Although Travel expenses for conventions are deductible for self-employed workers, you must demonstrate that your attendance benefits your trade or business. Special rules apply to conventions held outside of the North American area.

Then, as always, keep good records. Be sure to save all receipts, log mileage, keep copies of event materials, etc. And don’t forget to separate required expenses for the conference or event from non-deductible family expenses so you don’t double down. But if done right, you can get ahead professionally and enjoy some tax breaks while taking the family for some leisure time away from home.

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