We're coming back this week with another episode of our Tax Deduction mini series all about International Business Travel! Julie's inspiration for this episode came from an invitation to participate in an international conference, which got her thinking about how international travel for business may be deductible.
Take a look at IRS Publication 463 by clicking here!
Episode Highlights
- Most areas of tax are usually black and white; however, deductions pertaining to international travel for business can fall in a bit of a grey area so it's always important to consult your tax professional!
- Your vacation is not a business trip!
- If the international trip is primarily for personal reasons, such as a short one-day conference, an hour-long seminar, or a short meet-and-greet, then the trip cannot be considered as a deduction on your taxes
- Mixing business with pleasure can be tricky...
- If your international trip is primarily spent on business activities, but there are a couple of personal activities enjoyed, you can generally deduct MOST of the travel on your taxes
- These deductions can include transportation, lodging, and meals
- There are a lot of rules when it comes to spending certain days/times on business activities versus personal. It's vital to make sure to keep receipts and detailed records of what portions of the trip are business or personal.
- There are 4 exceptions to these deductions...
- You have no substantial control over the trip
- You are outside of the United States for no more than 7 consecutive days
- You spend less than 25% of your time on personal activities
- Vacation was not a major consideration even if you have substantial control over arranging the trip
Make sure to check out our blog post over at the GreenOak Accounting website all about international travel!
DISCLAIMER - Always consult with a tax professional to determine what tax deductions you are eligible for.
Links & Resources
GreenOak Accounting
Therapy For Your Money Podcast
