Monthly Archives: May 2020

The Upside to Business Travel

Many people abhor traveling for business, while some only hate it when they are consistently on the road as a road warrior. They frequently miss home, having their own familiar place to stay, and home cooking. Still, there are a number of tips for the business traveler that can make the best of traveling for business.

Free Fun Travel
Traveling for business can also help increase traveling for pleasure. While flying, staying at hotels, and renting cars one can be collecting loyalty points for future use. This means that one can be traveling for fun with the rewards of their business travel. It is a liberating feeling to walk to an airline counter and cash in some points for a trip to anywhere in the world- Vegas for the weekend or take someone special to Paris.

Travel Perks
Being a frequent traveler with the loyalty programs will have you an established elite traveler in no time. Pay attention to the requirements and do what you can to get elite status as soon as you can. The perks are tremendous with free and sometimes unexpected upgrades. Preference in the check-in lines will make a huge difference when you are pressed for time or dog tired at the end of the day. Preference in check-in/check-out times will be a perk you will use often.

Be In The Now
Every major town will have its unique flavor and will have some tourist must sees. See them when you have down time. When you are constantly on the road it will seem enticing to stay in a hotel room and relax to some TV, but when you do this day after day, town after town no wonder burn-out settles in. Get out and explore, get to know the town, it will undoubtedly help your business in that town to know more about it. Try the specialty foods of the area, stay away from national chains. And if you do find that you travel the same cities consistently, then make it your town. Find some favorite places to eat and entertain yourself, then you can actually look forward to visiting again.

Being able to travel for business is a wonderful opportunity and should not be seen as a burden. Changing of the attitude may be as simple as looking to the pluses and not focusing on the negatives of frequent travel.

Combining Your Vacation and Business Travel to Save on Taxes

A vacation can be quite a high expenditure, yet may be a necessary break for you and your family. As vacations are typically considered a luxury expense, it means that you have to bear all the costs for your vacation with no help or breaks from Uncle Sam. However, with proper tax planning, you can deduct some vacation expenses under business travel. This is common practice is especially popular in the corporate world. Ever wondered why management meetings, corporate strategic meetings, or client entertainment are done in extravagant and lavish hotels?

You need to be careful when deducting the vacation/”business” expenses to ensure that you are within the rules of what the IRS qualifies as permissible costs. Furthermore, besides business travel, you can also deduct expenses for travel that couples as trips in looking for a job. These tips will help you properly plan your trip and maximize on possible “business” deductions:

Job Hunt Travel Expenses

The tax code allows for individuals to deduct travel expenses for travel to look for employment, even if one does not consequently get a job. However, you need to have been searching for a job that is in line with your current occupation. You cannot claim deductions if you are a first-time job searcher or if you are looking for a job outside your current career field. The IRS does not also allow taxpayers to deduct expenses if they have been unemployed for a long time and are looking to get back into the job market, even if their search for a job is within his or her former business or career specialty. The IRS permits deductions for expenses including travel, meals, and lodging accommodations. Therefore, when planning your vacation, you can combine the travel expenses with the expenses accumulated in search of new employment to claim the deductions.

Transportation Costs for Business Travel

Business travel deductions come with several rules that have to be carefully followed. The IRS is aware that a lot of business expenses can be misused to cater to personal expenses. Therefore, this could be a red flag area for IRS audits and therefore, you need to be careful when claiming such deductions. Costs for transportation within the U.S. are allowed if a trip has a business purpose. For international travel, a taxpayer will need to demonstrate that at least 75% of the trip’s purpose was for business to have the costs allowed as a deductible. If not, the taxpayer will need to set aside the business elements of the travel costs from the personal elements. If business travel is on a cruise, then it has to be on a U.S. vessel and the vessel must avoid docking at foreign harbors to be tax deductible. The business expense deductible for a cruise has at a cap of $2,000.00 a year.

Accommodation and Meals for Business Travel

For accommodation and meals, one needs to show that the stay was business-driven. However, you can overstay in your travel destination and enjoy a vacation after the business dealings are done. In such a case, you can only deduct the transport expenses and the expenses incurred during the business period of your trip. You will have to shoulder the full expenses of the extension time, as this is a personal expense. For business meals for yourself and your business associates, the tax code allows for only 50% of the cost to be deductible (you will need to foot the other 50% without a deduction break).

Other Expenses

The IRS also allows the deduction of any other business-related expenses while on your business travel. These expenses include tips, any taxi or car hiring expenses, phone calls, Internet connectivity charges, and laundry. However, the expenses need to be reasonable to avoid unnecessary audits. Furthermore, the IRS can reject deduction claims based on the levels of extravagance. There is a fine balancing that needs to be practiced here to avoid any IRS problems.

Travel with Family

If your business and vacation travel includes your family, you cannot deduct any of the expenses relating only to your family. You can however, deduct any costs that you shared with your family as business expenses. If for example you traveled to your destination for business in your car with your family in tow, then the transport will be an allowable business expense. You can also combine other costs such as car-hire costs and shared accommodations.

Why not combine business with pleasure? If you have the opportunity to travel for business, you can enjoy some new restaurants, hotels, or entertainment spots with your business associates and be able to get some tax relief from Uncle Sam. Or, maybe you can take some “personal time” on the road and do some job hunting on your trip to get some tax breaks.