This story appears in the
December 2001 issue of
Entrepreneur.
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Now's the time to squeeze every possible tax deduction out
of your travel expenses. Tax expert Robert Wilensky says paperwork
is the key. "Keep records of all business travel
expenses-written notes on receipts, any kind of log, appointment
book or other record," says the Atlanta accountant. Other
suggestions:
- Leave no stone unturned.
Some business travel expenses, such as transportation, car or cab
fares, and meals and entertainment (limited to 50 percent), are
obvious. But don't forget smaller outlays like baggage,
shipping for samples or display materials, laundry, phone calls and
tips.
- Mix business and pleasure.
If your trip is primarily personal, you can't deduct
transportation costs. But you can deduct business lunches
and business equipment you buy as well as lodging for the nights
following days during which you do a significant amount of
business.
- Be careful about your significant
other. A spouse's travel costs can be deducted only
if the spouse is your employee and if his or her presence on the
trip serves a business purpose.
- Know the rules for meals and
entertainment. To document these, you must record five
items: date, place, amount, name of person and business discussed.
A convenient solution is to use a credit card and take notes on the
receipt.
Wilensky says you should keep business and personal travel
separate, but he has a perfectly legal way to parlay business trips
into vacations: "Use your frequent-flier points for personal
travel."
Christopher Elliott is a writer and commentator and the
editor of www.elliott.org.