Forums: Discussions for entrepreneurs and small business.

Hello,

In the past I didn`t have to travel much for my business.

But, I see a few trips this year that have a business component.

Question 1: Are these trips considered tax deductible?

a) A trip to meet with a prospective partner

b) A trip to a destination to do a workshop, where my family also comes along.

If a trip is a legitimate business trip, should I claim all mileage, gas, hotels, meals?

Thanks in advance!

Steve

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"Life is short. Love your work." Steve Bohler, MS The Oxford Program Founder/Head Coach http://www.TheOxfordProgram.com

Steve,

The short answer is yes.  Be careful however of what you lump into your expenses.  Anything directly related to your business (i.e. plane ticket, parking, meals and miles that you incur to go visit a partner) is deductible.  Let`s say you take your prospective partner out and spend on dinner (meals and entertainment) - 50% of those are deductible.  Your  CPA or tax software should calculate that for you automatically.

When your family travels with you, it is up to you how you want to prorate each expense on that trip as part business and part personal.  Whatever you do, maintain all documentation in case the IRS needs any proof of your expenditures and their relevance to your business. 

Hope that helps

Thanks!

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"Life is short. Love your work." Steve Bohler, MS The Oxford Program Founder/Head Coach http://www.TheOxfordProgram.com

Generally speaking, your family`s travel expenses are not deductible but your`s will be.  If you all go out to eat, your dinner counts but their`s do not even though it`s on the same receipt.  But say you are all staying in one hotel room which is a standard double-bed room.  You may have stayed in a room like that anyway so perhaps the entire room is deductible.  You make calls like that but like eGuru said, keep your documentation.