Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Deducting Your Vacation

September 13th

While holiday budgets are decreasing, companies are cutting back on employee vacation benefits. However, it is still possible to take that dream vacation without committing tax fraud or falling victim to any IRS audits.

Tax Deduction Rules

The rules for declaring business expenses during a combined personal and business trip are complicated. It takes close attention and possibly the assistance of a qualified tax lawyer, but the deductions can be made. By following these simple tips, you can ensure that your business deductions fall within legal limits so that you won’t end up paying back taxes with interest.

1. Transportation Guidelines. If the trip is primarily for business purposes, domestic U.S. transportation costs are fully deductible, both ways. However, for international journeys, the trip must be a minimum of 75 percent business in order to qualify for travel deductions.

2. Family Expenses. Unfortunately, you may not deduct expenses for anyone who is not directly involved in the business portion of the trip. In order to deduct family expenses, look for places where family needs coincide with business-related needs. For example, if you need to rent a car for both your business tasks and for the family vacation, it may be deducted from your taxes.

3. Meals. While on a business trip, the meals of you and your business associates are tax deductible at a rate of 50 cents to the dollar. However, this tax deduction does not extend to any meals enjoyed exclusively by the family.

4. Document Everything Very Carefully. The IRS has been cracking down on incidences of tax fraud, with a particular focus on itemized tax deduction claims. In order to avoid audit or charged with a bill for back taxes, including penalties and interest, be certain to keep meticulous records of your expenses. This means keeping track of not just receipts, but official itineraries, agendas, or anything else that shows a record of your business-related activities.

 
 
RSS

Subscribe Now
Social

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Categories
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
Archives
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011