Mixing Business With Pleasure

Posted on March 11th, 2024

How would you like to make your next family vacation a tax-deductible business expense?

If you’re as busy as most self -employed dentists, finding time for a vacation can be a challenge...  

But by planning both business and pleasure time into the same trip, you can turn many of your personal travel expenses into tax-deductible business expenses.  

There are a lot of expenses that you can make deductible for tax purposes...  

Travel expenses for flights, car rentals, or vehicle expenses can all be deducted. So can lodging and 50% of meal expenses that are related to your business transactions.  

However, there are several rules you need to follow to take advantage of this strategy, so it’s best if you plan your travel with your tax strategist.    

For example, you need to be conducting business the majority of the time in order to deduct a trip as a business expense. The IRS measures time in days, meaning you’d need to spend at least 4 days out of a one week trip mainly on business if your destination is in the US.  

The rules aren’t as strict for international business trips. Business only needs to be 25% of your trip if your destination is outside of the US. That makes a trip to the beach in Mexico sound even better, doesn’t it? :)  

Traveling to and from your destination is considered a necessary part of a business trip, so that already gives you two days to use for business purposes.  

If you’re in meetings or attending a conference on other days, those days would be considered business as well. And theres's no reason you can't enjoy some R&R after hours.  

You can also have days that are just for personal or family adventures. You just can’t deduct any of the expenses you incur on those days.  

If you’re bringing the family along on the trip, just make sure your expenses are "necessary and ordinary." You can deduct the cost of a single room, but not the cost of a family-sized suite, for example.  

As long as you document what you’re doing, you can go ahead and rent the suite and only deduct the portion that coincides with a single-room rate.  

By incorporating business activities into your next family vacation, you could make a significant portion of your family’s travel expenses tax deductible.  

Would you like expert help implementing this strategy for your business? I’ll show you how to plan your next family vacation to where it will give you $5,000-10,000 or more in tax deductions.  

Talk soon, 

William Gonzalez, MBA AFSP


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