This is a guest post by Craig Keolanui of SmBizWinningTips
You might have heard of planning a vacation around a trade show or convention that you can attend, but consider those trips you want to take but don’t necessarily want to spend money on, such as weddings or other family events.
It would be nice to write off some of these expenses and, if done carefully, it is entirely possible.
Most often these trips involve expensive airfare and covering your business in your absence, so getting a tax break is the best way to recoup some of these costs. The key is to mix business with pleasure and the rest is as easy as keeping organized receipts.
What else can be accomplished on your trip?
Make your personal trip a business trip. Network with old friends and read up about conventions or events involving small businesses in the destination city’s publications or websites. Attend a convention, trade show or a conference or anything that can directly relate to your business. Make sure to keep some type of documentation to justify the travel expenses.
Hold onto the ticket stubs, notes from a conference, brochures or any material that supports the reason for taking the trip.
Evaluate possible deductions prior to the trip.
You obviously will pay more for last-minute travel arrangements, in some cases, so your airfare will be the first thing on the list. If you have to rent a car, that will follow, but don’t forget to log mileage and document your driving to and from any scheduled appointment or meeting. All travel meals will be worthy of 50% of the expense, but eating at the homes of family or friends will make the trip less costly.
Be careful about what else you try to expense. It would be unwise to try to write off flowers that you purchase for Aunt Edna’s bedside or the wedding gift you bought, unless the bride or groom is a client.
If your trip is prolonged, have more than one business reason.
If you stay over a week and plan on deducting the hotel room and meals, it is smart to have more than one business engagement to attend. This will help keep things above board if you were to face an audit.
Last-minute personal trips happen all the time, and operating a small business provides some advantages to offset the cost. In an occupation where long hours are spent and time is very short, it’s important to maximize every opportunity to save money.