Tax season is upon us. If you’ve already completed your taxes, great work. If you haven’t, check out some of these tips to tackle your taxes like a pro.
Tax Deductions on Travel Expenses
Many business owners aren’t aware they can deduct taxes from a business trip combined with a vacation. Outlined below are a few examples of deductible travel expenses.
- New business: Looking for a new location? Travel to and from the location on days meetings happen are deductible.
- Conferences: This is most often the work and play trip combined into one. Travel to and from the conference is deductible, but days that business doesn’t take place are not deductible.
- Board meetings: For board meetings to be deducted, there must be a reason why the primary location is not suitable for the event. For example, to get more board members to attend the meeting would qualify.
- Spouse/Children: Travel for children is typically non-deductible, unless there’s a reason. If your child is your videographer and attends the trip to work with you, then that would qualify as a deductible expense.
Home Office
If you have a home office, the home office deduction won’t cost any more than what you already pay. The home office turns a percentage of your personal home expenses into tax-deductible expenses. Speak with your tax person to calculate the amount of savings this deduction can influence the amount you may owe.
Follow these strategies to get your personal and business income taxes to the lowest legal amount. Stay tuned next week for more tax tips.
Inspiration for this post came from “Tackle Taxes Like a Pro” by Jacob Curtis, CPA, published in the February 2021 issue of American Quilt Retailer.
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