Business vacation tax deduction: Don’t lose tax benefits when combining business travel with vacation pleasure.
Are you thinking about turning a business trip into a family vacation this summer? This can be a great way to fund a portion of your vacation costs. But if you’re not careful, you could lose the tax benefits of business travel. Generally, if the primary purpose of your trip is business, then expenses directly attributable to business will be deductible.
Reasonable and necessary travel expenses generally include:
Air, taxi and rail fares,
Baggage handling,
Car use or rental,
Lodging,
Meals, and Tips.
Expenses associated with taking extra days for sightseeing, relaxation or other personal activities generally aren’t deductible. Nor is the cost of your spouse or children traveling with you. During your trip it’s critical to carefully document your business vs. personal expenses. Also keep in mind that special limitations apply to foreign travel, luxury water travel and certain convention expenses!
