In this global economy, even a small operation like yours may be doing business overseas.
Strategy: Learn the key tax rules for deductible foreign business travel. In some cases, just a minor change in your itinerary could provide a big boost in your tax deduction.
Here’s the whole story: The basic rules for deducting foreign travel expenses are generally the same as the tax rules for travel within the United States. In other words, you can deduct business-related travel expenses, such as lodging and 50% of the cost of your meals, while away from home on business. And you can write off the full cost of your airfare as long as business is the primary purpose of the trip.
But there are special limits for deducting foreign travel expenses if you spend part of the trip on personal pursuits. Your round-trip airfare is completely deductible only if you meet at least one of these tests:
- You don’t have substantial control over arra...(register to read more)