Gimme A Break
Don't forget last-minute travel tax savings.
Sometimes the rewards of business travel seem few and far
between. There's the ever-present benefit of accumulating
frequent-flier miles, the occasional free trip, and maybe an
upgraded hotel room from time to time. But one place most business
owners who travel regularly don't look for a dividend is on
their tax returns, according to Jeff Schnepper, author of How to
Pay Zero Taxes (McGraw-Hill). "There are a lot of things
that get overlooked," he notes.
Such as? Perhaps the single most glossed-over deduction, says
Schnepper, is your car. Or, more precisely, your cars. Many
entrepreneurs will deduct only one of the personal automobiles they
use for business travel, even though they may use a second one for
work as well. Schnepper says it may be more cost-effective to write
off a percentage of one car and a percentage of another instead of
basing your deduction on one car only. The government also allows
you to deduct depreciation and numerous other expenses, such as
maintenance costs or even the price of an audio entertainment
system, in certain cases.
Other travel deductions include:
- The cost of a working vacation, as long as the primary reason
for the visit was business.
- Meals and entertainment--not just for a client but for anyone
who is a potential client or who's going to refer you to a
client.
- A home office. Don't forget temporary offices in vacation
homes or condominiums--anywhere you may have worked.
Content Continues Below
Christopher Elliott is a writer in Los Angeles and a
columnist for "ABC News Online."
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