For the most part, many business owners have to travel a good bit during the year for business, which can be quite costly and take them away from their office space for a while. At the end of the year, many business owners are unsure about what they can and cannot deduct on their taxes. Instead of causing red flags for the IRS by deducting too much on your travel expenses, it would be wise to get the advice of a tax professional. They will be able to let you know what you can deduct to reduce the amount you owe the IRS at the end of the year. Here are a few tips on deducting your travel expenses in order to help you save some money on your taxes at the end of the year.
Just the Essentials
The IRS classifies travel expenses as the necessary expenses that come along with traveling away from your office space in order to conduct business. This means that the amount of expenses you write off need to only cover the basics and not lavish hotel expenses. The IRS looks at the type of business in relation to the amount of travel expenses, which means if you are an auto mechanic, chartering a private plane for business travel really doesn’t work.
No Family Travel
The next thing to remember when trying to figure out what to deduct is that any family members that travel with you need to pay their own way. Trying to deduct a family members travel expenses on your taxes will raise a red flag and it could possibly get you audited. If you are unsure about your tax obligations, then be sure to consult with a tax professional.
At Business Workspaces, we can offer you the office space that you need to get when you are not traveling. We have great amenities that can help you increase your productivity and allow you to work more efficiently.