When you make your vacation a business trip, your transportation expenses become deductible.

It’s time to take a vacation!

What kind of travel are we talking about?  All of these things count as deductible business travel expenses:

  1. Airfare, including first class
  2. the presidential suite
  3. rental car
  4. boat tickets-yes, this includes cruises

So whether you are planning a luxurious retreat to the Caribbean or you are trying to visit the in-laws, you could save yourself a lot of money when you turn your vacation into a business trip.

Types of Travel Expenses

There are two types of expenses you can deduct when you travel for business.

  1. transportation expenses
  2. life expenses

The Basic Rule

According to the tax code, you can deduct your travel expenses as long as your trip is an “ordinary and necessary”
cost of doing business.

These are 5 rules that you can use to justify a business purpose for your trip.

  1. Profit motive.  The trip needs to help your business make money
  2. Stay overnight.  Don’t forget the overnight rule.  you get deductions only for business trips on which you stay overnight away from your tax home.
  3. Apply the “for only” test.  Would a rational businessperson travel for ONLY the business reason?
  4. Primary purpose test.  Make most of your days business days.
  5. Maintain good records.  This is the most important step of them all.  You must keep good records
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