For hard-working Americans, Labor Day cannot get here fast enough! Although
you may just want to relax, grill out in your backyard, or maybe even sulk over
the fact that the unofficial end of summer has arrived, don’t count out the
possibility of a last-minute family vacation just yet!
Yes … Labor Day is supposed to be a day where we do absolutely nothing,
but taxes never take a break. For those of you who work around the clock, this
year’s Labor Day can instead work for you.
In order to reduce your vacation bill and turn your getaway into a tax
deduction, here is what you need to know:
- If your trip is
primarily for business, such as attending a seminar in a popular tourist
destination, your travel costs can be deducted. International business trips allow
you to write off these costs, too.
- Want to stay a
little longer after your business trip has ended? This doesn’t take away your
ability to deduct your expenses. Just make sure that you don’t deduct expenses
relating to your recreational fun, such as amusement park tickets.
- It’s ok to bring
the family along, but expenses solely for them (or anyone else not involved in
the business of the trip) cannot be deducted. Certain aspects of the vacation –
the entire family staying in your single hotel room that was previously booked
by your company and you were going to stay in anyway – can be deducted.
- Read up on
deductions before your trip to know what costs can be written off and those
Chat with your tax preparer
beforehand to determine what other costs can lower your tax bill for next year
and how to correctly file them. Remember to keep documentation of your travels
– such as conference brochures, detailed receipts, and other papers with dates
that help prove your trip was legitimate. Be prepared to show proof in case the
IRS requires an audit of your tax return.
on the IRS website also has information regarding business deductions.
Contact your local Liberty Tax for professional tax advice and information on audit assistance.
Disclaimer: Every effort has been
taken to provide the most accurate and honest analysis of the tax information
provided in this blog. Please use your discretion before making any decisions
based on the information provided. This blog is not intended to be a substitute
for seeking professional tax advice based on your individual needs.