We all love a good vacation. Whether your vacation plans involve world travel, going to the beach, going skiing, or just hanging out at home on a staycation, vacations are critical part of life. Business owners can sometimes combine business with pleasure by planning their vacations around business travel.
Travel for business trips are obviously tax deductible, but whether the meals and entertainment are deductible can depend on the type of meal, the records you keep, and the business impact of it. The Tax Cuts and Jobs Act (TCJA) changed these rules, and many business owners and executives have not kept up on the impact these rules have on their travel expenses.
While a vacation is not tax deductible, if you can combine business with your travel, you may be able to deduct part of the trip. You may also find that mixed use things like remote Internet can be valid business expenses, even if the plan also provides you with sufficient bandwidth to stream Netflix in addition to responding to work emails.
Even where not tax deductible, working budgets for travel and vacations into your family budgeting can be an important part of a happy and complete life. By tracking a full picture of your family finances and business finances, we can help you meet these priorities quickly and efficiently.
A solid tax planning strategy will take into account the tax impact of business travel and the partial deductibility of those expenses. It is important to know the current rules and regulation on these deductions, instead of using ideas from the “shoebox of receipts” era of tax planning.