Deducting vacations for both US and Canadians

Sandy Botkin
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Deducting “vacations”: Normally vacations aren’t deductible,but if you can do sufficient daily work, the daily living expenses are deductible. You are on business travel whenever you are sleeping away from home overnight conducting business. The key is that your primary purpose of the trip is for business.

Thus, if your primary business is to have fun , the trip isn’t deductible. However, if your primary purpose is to get referrals by visiting various offices and you happen to have some fun while you are there, the on the road expenses become deductible.

There are two categories of travel. There is the transportation rules which basically say in the US that the majority of your total days, including travel days, are business. Then there is the one the road expense rule.: For every day that you are doing business, you can deduct 50% of food, all lodging, tip, laundry etc

If you are there for a specific reason , there is no time limit per day. Thus, if you are visiting an office to get referral or to do an appraisal for a client, there is no time limit for that day for it to be counted as a business day. For seminar or convention days, you want to spend at least 4 hours and one second attending meetings. Also, Don’t forget to deduct your dry cleaning incurred to clean your soiled clothes when you get back from the trip.

For you Canadians, the rules are quite similar except you are deemed to be on business travel if you are working away from home for at least 12 HOURS OR MORE..You don’t need to sleep away from home conducting business as we do in the US

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