5 Crucial Rules to Turn Your Sizzling Summer Vacation into a Red Hot Business Deduction
Do you know you can legally turn your sizzling summer vacation into a red hot business deduction? If you can learn to apply 5 crucial rules, you can turn your summer vacation into a business deduction. Here is what you need to know.Mindset – you must have the right mindset in planning your trip and choosing the best destination. You must find a business reason for your trip. For example, if you have a Real Estate investment business, it would make sense for you to visit surrounding areas with an eye to identifying possible real estate ventures. If you own a jewelry store, however, you might be looking for new locally-produced merchandise for your store in exciting and exotic places.Know the IRS Rules – According to the IRS, you are on a business trip when you are traveling for business reasons away from home overnight or for a period of time sufficient to require sleep.• Next, you must schedule your time while traveling so that the majority of your time (4 hours and 1 minute) each day is spent on business-related activities.• If you want to take your spouse or significant other on the trip, he/she must be an employee. Hire them to assist in marketing, computer https://encurtando.com.br/ work, or management of your business. It is then important for them to accompany you. You must have a legitimate business reason for them to go on the trip.• Count travel days as business days (just take a reasonably direct route to your destination).• Make weekends and legal holidays deductible by scheduling meetings or other business activities on the days preceding and following. As long as holidays or weekends fall between legitimate days you spend on business activities, they can be deducted.Keep accurate and detailed records – Keep all receipts from your trip. We generally recommend that people use our handy tax envelopes. They provide a place to record each expense item for travel and an envelope to keep them together. Then, when you return home, just put the envelope with your tax receipts and give it to your CPA when it is time for tax preparation. Again, check with the IRS to see what is deductible. Many people don’t know that when they do dry-cleaning in preparation for a business trip, it is deductible.Prepare “Special Meeting Minutes” for each trip – Your special meeting can happen at your chosen destination and it can count as a business purpose.• In these minutes you can discuss the business purpose for your travel, who attended the meeting, and what decisions (if any) were made regarding the business.• Visiting business colleagues can be counted as a business purpose for a trip. You can learn new business techniques from colleagues, and even from competitors.• The key is to schedule appointments in advance and document them. Keep accurate notes that indicate with whom you met and for how long. In addition, give a short description of the business discussion, such as “discussed sales or marketing techniques.” Finally, Check with your CPA – If you have any doubts about what can qualify as a deduction or about the meaning of any of the IRS rules, just check with your CPA. He or she will be able to tell you specifically how to make it work for you.Happy Business Travels.