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.
- 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.
SOURCE: Entrepreneur magazine