Just because IRS audits are at an all-time high doesn’t mean that you can’t combine your business travel with your family vacations. However, you do need to be careful and ensure that you are doing things in the proper manner. The reason for doing this is to save you money when you travel and allow Uncle Sam to “pick up the tab” on all of your travels. With that being said, her are some rules to consider when turning your vacations into tax deductions during tax seasons.
When You Are Looking for Work Abroad
For those individuals who are traveling to search for work then you may be able to use this as a tax deduction. This is true even if you don’t get the job. However, you do need to prove that your reason for going on the trip was to search for work. This is much easier story to represent if it you were searching for a position that is within a field that you’re already working in.
Deductible Business Travel Expenses
Let’s take a look at a few business expenses that you will be able to deduct when on vacation:
- Getting There: In the United States, you can write off up to three fourths of your expenses that involve actual traveling. This means that you can write off your bus, train, or plane ticket and claim it as a business expense- even if you really are on vacation.
- Cruise Line Travel: Keep in mind that the total amount of money that you can deduct from cruse-related travel within any given year cannot be more than $2,000. There are on a few very rare exceptions to this rule.
Overstaying Your Business Trip
So, you’re probably wondering how you can possibly deduct these expenses if you aren’t technically at a “business trip”. Well first off, remember that all that you need to do is prove that you were either searching for work or participating in a work-related venture.
From here, you can simply “overstay” your business travel by a few days and enjoy it as a vacation with your family (or alone). The IRS won’t necessarily disqualify you by doing this and it can be a great way to enjoy a business trip while deducting these expenses on your taxes. Follow these tips if you would like to turn your vacations into tax deductions at the beginning of the year.
Noc travels for business from time to time and sometime uses Travel Advantage Network for accommodations.