It’s a global economy. Even small business operations have established relationships with clients and vendors in foreign countries. So you may find yourself globe-trotting on behalf of your company.
Alert: It’s important to learn the tax “ins and outs” for foreign business travel.
Here’s the whole story: The basic rules for deducting foreign travel expenses are somewhat similar to the tax rules for travel within the U.S. borders. Within the United States, you can deduct business-related travel expenses, such as lodging and 50% of the cost of your meal for business days, and you can write off the full cost of your air fare as long as the primary purpose of the trip is for business.
However, there are special limits for deducting foreign travel expenses if you spend part of the trip on personal pursuits. Your roundtrip air fare is completely deductible only if you meet at least one of these four tests:
1. You don’t have substa...(register to read more)