TAX DEDUCTIONS FOR BUSINESS TRIPS

Greetings. I am planning on taking a business trip/vacation. Can I get a tax deduction? R.M.

R.M., I hope you have a great trip. Travel costs are generally deductible for trips you take on behalf of your trade or business. Here are the general rules:

You're "traveling" when you're away from home overnight or long enough to need sleep.

• "Business day" costs include 50% of meals and entertainment plus 100% of lodging, local transportation, incidentals, and your first load of laundry and dry cleaning back home.
• If your spouse is a bona fide business partner or employee, traveling for a bona fide business purpose, you can deduct their costs too.

You'll need receipts for all lodging and expenses over $75. Transportation costs include planes, trains, and automobiles. The IRS prescribes specific formulas for calculating deductible business transportation expenses. These rules generally turn on how much of your time away from home you actually spend on business, and whether you travel outside the United States.

These rules generally limit your business deductions to bona fide business trips -- not vacations disguised as business trips. But you can still take generous business deductions for trips including some personal time. We recommend you keep a log or diary of your business time so you can substantiate whatever deduction you claim.

Want to write off weekends? You can treat them as business days if they fall between business appointments or if you stay over (before or after your business time) to qualify for airline "Saturday Stay" discounts. (Low airfares once meant the end of those Saturday requirements -- but $140/barrel oil, along with new fees for checked bags and peanuts, look likely to bring them back.)

Travel deductions aren't especially complicated -- if I had more information about your plans I could give you a more precise answer. Let me know if I can be of more assistance.

Larry Kopsa CPA