(In)Frequent Flyer
Typically at this time of year we see many business owners planning their upcoming overseas travel for conferences, etc. Of course with the coronavirus it looks like everyone will be staying home this year instead. Silver lining? Now you have more time to read this blog post!
When life returns to normal and you can plan that overseas business trip, there are a few things to keep in mind as far as deductions are concerned. If you travel outside the US and spend the entire time on business activities, the entire trip is considered for business and may be deducted as a business expense in full. But wait, it gets better! Even if you don’t spend the entire time on business activities, the trip may still be considered 100% business related if any of the following criteria are met:
You do not have substantial control over arranging the trip
You are outside the US for a week or less
You spend less than 25% of the total time you are outside the US on non-business activities
You can establish that a personal vacation is not a major consideration, even if you do have substantial control over arranging the trip
But let’s say you don’t meet any of the above criteria. You may still deduct any costs associated with attending a professional seminar or education program or other expenses that are directly related to your business.
Where is your favorite place to travel, business or otherwise? Bon voyage! (Hopefully soon…)
