As you grow your business, you’ll often have to travel out of town for work purposes. But, we often get asked, “What travel expenses are deductible?” The IRS has some strict rules about this so let’s go over what you can and can’t write off at tax time.
You can deduct unreimbursed travel expenses that you incur as an employee, if you temporarily travel away from your tax home for your job. These expenses include transportation, car expenses, lodging and meals. (Meals are only allowed if you are traveling overnight.)
You can deduct unreimbursed travel expenses that are ordinary and necessary expenses of going from one workplace to another. Commuting costs (travel between home and work), however, are not deductible. If you have an office in your home that you use as your principal place of business for your employer, you may deduct the cost of traveling between your home office and any other places of work associated with your employment. Read More
From travel expenses to paying wages to family members, there’s no limit to what people will try to write off at tax time for the sake of their business. But where do you draw the line? Which write-offs you’re trying to write off go too far?
This is a category business owners can easily get into trouble with if they’re not careful.
• Key Issue: You simply can’t deduct services of a purely personal nature that aren’t related to your business.
• How to Do It Right: Getting an opinion from a tax professional as to whether an expense is deductible for your business makes most sense. The cost of high-speed internet Read More
From travel expenses to paying wages to family members, there’s no limit to what people will try to write off at tax time for the sake of their business. But where do you draw the line? Which write-offs you’re trying to write off go too far?
Here’s a write-off that sometimes is difficult deciding just where to draw the line. Can you deduct the cost of going to see a Cirque du Soleil show in Las Vegas if you’re treating your client? The answer is yes, as long as you can justify it as a business expense. And what if your spouse goes along on the trip? As long as they’re a partner or employee of your business and attended conventions or meetings on the trip you took together, then his or her travel and 50% of his or her meals are also deductible. Read More
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