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How to Deduct Business Travel
LISTEN AND SUBSCRIBE HERE
How to Deduct Business Travel
Today, I’m talking about an important topic for entrepreneurs: business travel and deducting business travel on your taxes. I’m highlighting the importance of understanding the rules for deducting transportation costs, accommodations, and meals, and sharing how you can properly document your travel so you can avoid getting audited by the IRS.
Join me in this important episode to learn how you can distinguish between what’s deductible and what’s non-deductible when it comes to business travel expenses.
LISTEN AND SUBSCRIBE HERE
Today, I’m talking about an important topic for entrepreneurs: business travel and deducting business travel on your taxes. I’m highlighting the importance of understanding the rules for deducting transportation costs, accommodations, and meals, and sharing how you can properly document your travel so you can avoid getting audited by the IRS.
Join me in this important episode to learn how you can distinguish between what’s deductible and what’s non-deductible when it comes to business travel expenses.
Also mentioned in today’s episode:
Mixing personal elements with business travel and how to deduct properly 8:05
The 4 qualifications for deducting foreign travel costs 17:40
Deducting travel costs for inspiration without getting audited 27:15
If you enjoyed this episode, please rate, review and share it!
Links:
Right Back to It, Waxahatchee featuring MJ Lenderman
Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc
Your Miami Tax Guide: Yes, You Can Deduct That Pina Colada
After a few weeks diligently absorbing the dark, awful post-election news, I’m ready to turn my attention to fun, sun, and travel deductions for the Miami art fairs.
To review the basics, if you’re a professional artist with a profit motive, you’re reporting your income each year on a Schedule C (as part of your 1040 form), and the beauty in that is that it entitles you to list your income and your expenses. So as a self-employed person, you are paying taxes on the difference between those numbers (aka your “profit,” which is income – expenses), and not on the gross income you receive.
Travel expenses incurred in your arts business are one of the great deductions that you are allowed. A note of caution before you go expensing a bunch of luxury accommodations though: by law, your business expenses must be “ordinary and necessary” to qualify. This means that if the industry standard is a Motel 6, and you book the Ritz-Carlton, you may deduct only the Motel 6 amount. Further, travel expenses are a tempting area for tax abuse (along with meals and entertainment and home studios). If yours are out of proportion with the size of your business, or compared to your peers, you have an excellent chance of being audited.
Warnings aside, travel deductions are a great benefit, and here is how to make the most of them, in time for the Miami art fairs.
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