SMALLBIZ BUILDER July 2012 PADGETT BUSINESS SERVICES® Vol. 10, No. 7
Part 2 of 3
Tax Deductible Vacations:
So, as the summer vacation season begins to unfold, you may want to consider mixing some leisure time in with your business travel. With a little planning, you can get Uncle Sam to subsidize your downtime.
Business or Pleasure. The IRS doesn’t specify the determination of whether a trip is for business or pleasure on domestic trips. However, looking to the rules on international travel for guidance, the number of days spent on each type of activity is the key.
An important factor in determining if the trip is primarily business or pleasure is the amount of time spent on each, although this isn't the sole factor. In general, the trip is “primarily for business” if more than half of the days are spent on business activities.
How to Figure out the time:
The following days count toward your total business days:
Weekends and holidays, if they fall between days devoted to business and it would be impractical to return home;
“Standby days,” when your physical presence is required, also count as business days – even if you’re not called upon to work on those days;
Any other day principally devoted to business activities during normal business hours; and
Days you intended to work but couldn’t due to reasons beyond your control (local transportation difficulties, power failures, etc.).
Craig E Waldron, EA
Richard Lamoreaux, CPA
9500 S 500 W, Suite 206, Sandy, UT
Send Mail to: PO Box 2468, Sandy, UT 84091
Voice (801) 565-9878
FAX (877) 313-1879