Tax Loophole Alert! How to deduct your vacation!
This could be worth $1,000s every year.
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This could be worth $1,000s every year.
***Thread***
Other, than in 2020, many of us go on vacation every year.
Vacations are not cheap (usually).
Some vacations might have airfare, lodging, and food costs in the $1,000s or more.
When I'm on vacation, I like to be on vacation, but I know how most of us on Money Twitter are...
Vacations are not cheap (usually).
Some vacations might have airfare, lodging, and food costs in the $1,000s or more.
When I'm on vacation, I like to be on vacation, but I know how most of us on Money Twitter are...
You are going to spend a couple hours per day working, even while on vacation.
Even more, at the resort bar or the pool, you are going to be naturally networking and making connections. Talking shop.
You might even be there looking at property to buy and rent out.
Even more, at the resort bar or the pool, you are going to be naturally networking and making connections. Talking shop.
You might even be there looking at property to buy and rent out.
If your primary purpose is business, the trip is deductible.
The hurdle for primary purpose is generally that you work at least half of every business day = at least 4 hours/day. You don't have to work on travel days.
Do that and you should be able to deduct your vacation.
The hurdle for primary purpose is generally that you work at least half of every business day = at least 4 hours/day. You don't have to work on travel days.
Do that and you should be able to deduct your vacation.
Ideal Scenario
You meet your friends at a resort in Florida.
Airfare - $600
All-Inclusive Resort - $2,100
Other - $300
Total - $3,000
You work 4 hours per day because you can't leave it alone, but still have a great time the other 20 hours per day!
Take a $3,000 deduction!!!
You meet your friends at a resort in Florida.
Airfare - $600
All-Inclusive Resort - $2,100
Other - $300
Total - $3,000
You work 4 hours per day because you can't leave it alone, but still have a great time the other 20 hours per day!
Take a $3,000 deduction!!!
FAQs
Q: What is considered working?
A: Profit motivated activities.
Q: Can I deduct my family's expenses if they come, too?
A: Are they working on the business fours hours per day, too? If so, you should. If not, you generally would only deduct your own expenses.
Q: What is considered working?
A: Profit motivated activities.
Q: Can I deduct my family's expenses if they come, too?
A: Are they working on the business fours hours per day, too? If so, you should. If not, you generally would only deduct your own expenses.
Q: If have heard the rules are more strict if traveling outside of the US. Is this true?
A: If you are gone more than a week outside of the US or more than 25% of your time is personal, you may only be able to deduct some of your expenses.
A: If you are gone more than a week outside of the US or more than 25% of your time is personal, you may only be able to deduct some of your expenses.
Q: Do I need to document?
A: Yes, thoroughly. Keep all your receipts and make a daily log of what you did and for how long. Give to your tax preparer.
If this thread was valuable to you, be kind to your friends and RT so they can get value, too!
A: Yes, thoroughly. Keep all your receipts and make a daily log of what you did and for how long. Give to your tax preparer.
If this thread was valuable to you, be kind to your friends and RT so they can get value, too!
This thread above is the type of ideas you want from your tax advisor.
https://twitter.com/AskForTaxAdvice/status/1308489679176708097?s=20
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