Bye, bye lockdown. Hello, travel! Looking to add travel back on the books for 2021 and 2022? Did you know that days spent traveling could effectively be treated as business days? This means that if you take your time arriving at your business destination or have to be on your business trip for a couple extra days, the days spent sightseeing could count as a part of the entire trip. The number of business versus personal days is critical but the scales can tip in your favor.
According to this article by CPA Practice Advisor, you must prove that your trip was spent with “more time on business than pleasure. Therefore, the number of business versus personal days is critical. Fortunately, the days spent traveling are effectively treated as business days. This can tip the scales in your favor.” These costs can also be in connection to transportation, housing, and meals. Tax Cuts and Jobs Act removes 50% deduction for leisure fees after 2017. Make sure to always have records of your travels if the IRS challenges certain deductions that were made. To learn more, check out this article by CPA Practice Advisor. Get more information from our strategic partners or benefit from our business coaching! Send an email to [email protected] if you have more questions!