Are Business Travel Expenses Taxable?

As the yearly tax time approaches, many people are searching for extra money. They are scraping for loose change or trying to start there own business to make more money or just to make ends meet. When your unemployed and been searching for work for more than 2 years it can be very depressing and tiring to find money. But if you have decided to work as your own business and have been working for yourself, there are ways to get that money you put out, back! You make ask how is that possible? Well when it is time to file your taxes in February 2012, you can put on the 1040 Form your “Business Travel Expenses.” Many people don’t think about filing there expenses. Especially if it may seem very small travel and not a top Fortune 500 Company. But it is time to change that thinking pattern!.

When your self employed/or run your own business, you have considerable leeway to arranging your business travel plans. A great deal of diligent record keeping, you can legitimately convert leisure travel cost into tax-deductible business expenses.

* With Domestic Travel If you travel only within the United States Region, it is deductible if the trip is primarily for business. This includes Airfare, Parking, Cabs, Rentals, Tips, Dining. You may ask what makes a trip primarily for business? Well, if you go to Seattle to see clients for a week and spend a afternoon playing golf, that is considered a business trip.

* There’s A Strategy – Make sure that most of the days are for business. The IRS usually or generally accepts a broad explanation of business days. You need to make sure the entire day is for business in order for it to count.

* What About International Travel – Traveling outside of the US is a bit different if on business. If your trip is for a week or less, it will still be considered a business trip or taxable. If you, how ever, spend about 20% of the day that your away vacationing, then it isn’t considered a business trip and not deductible. Though, if you do some business on any day, you have reason to designate it as a business trip. Most of all keep a foreign business trip within a 7 day limit so your tax write-off will extend your leisure time off.

*Record Keeping Is Key – Include phone logs and e-mails correspondence in setting up travel meetings. Make sure to keep a copy of all papers even if you go to a convention. After your trip, send a letter or e-mail to all parties you meet with or spoke with referring to the business purpose of your encounter. Never hesitate to deduct your legitimate travel and entertainment cost when your prepare your tax return. On the other hand claimed travel and entertainment deductions may attract the attention of the IRS. So it is best to be prepared to justify any deductions. Remember the more paper showings the purpose of the business travel, the more likely your deductions will be accepted.

For more information on Business Travel Expenses, please check .

People also view

Leave a Reply

Your email address will not be published. Required fields are marked *