Turning a Business Trip Into a Vacation Can you mix business and pleasure when claiming tax deductions for business trips? Only if you play by Uncle Sam's rules.

By Joan Szabo

Opinions expressed by Entrepreneur contributors are their own.

Thinking about attending a business convention and perhapstaking a personal vacation afterward? It is possible to do this anddeduct the cost of travel to a trade show or convention if youfollow certain tax rules. First of all, the expenses cannot be onesthat will be reimbursed by the company. In addition, the conventionmust be directly related to your trade or business.

Another deduction to look into involves meetings on a cruiseship. You can deduct up to $2,000 annually of the expenses incurredwhile attending a business seminar or convention held on a cruiseship. "You can get a deduction for this as long as the cruiseis held on a U.S. ship, all ports of call are located in the U.S.or a U.S. possession, and you report the details regarding thecruise on your tax return," says Bernie Kent, a partner withaccounting and professional services firm PricewaterhouseCoopers HRServices in Detroit. For example, the IRS wants a writtenstatement signed by you giving the total number of days you spenton the trip and the number of hours each day you attended scheduledbusiness activities. You have to include a written program of thebusiness activities. You must also attach a written statementsigned by an officer of the organization or the group sponsoringthe convention that includes a daily schedule of businessactivities and the number of hours you attended the businessactivities.

If you attend a seminar, convention or similar meeting outsideNorth America, then you must establish that it is as reasonable forthe meeting to be held outside North America as within NorthAmerica, taking into account a number of specific factors,including the purpose of the meeting and the activities takingplace.

The IRS says if you travel outside the United States forbusiness, it is possible to deduct travel expenses incurred whilegetting to and from your destination. But if you decide to tack ona vacation, the IRS will expect you to allocate your travelexpenses in proportion to the number of days you spend onnonbusiness activities during the trip.

There are, however, some situations in which you can deduct allof your business-related travel costs for a foreign trip. Oneexample: If you stay outside the United States for a week or less,not counting the day you leave, but counting the day you return,then you can deduct all of your business-related travel expenses.For more information, read IRS Publication 463, available atwww.irs.gov.

The regulations may seem cumbersome, but at least it'spossible to take deductions for a business trip and still enjoy afew days of R&R.


Great Falls, Virginia, writer Joan Szabo has reported on taxissues for 17 years.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business News

'Nothing More Powerful': How to Transform Companies From Within as an 'Intrapreneur,' According to a Microsoft Office and Yahoo! Shopping Cofounder

Elizabeth Funk wrote the first code for Yahoo! Shopping on her own, based on skills she acquired from an "HTML for Dummies" book.

Franchise

The 10 Best Franchises to Open in 2018

Here's everything you need to know about the startup costs, training and investment opportunities from the top 10 companies in our Franchise 500.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Growing a Business

How Meta Generated $32 Billion in Ad Revenue Last Quarter — and How You Can Create Million-Dollar Weekends Using the Same Strategies

Meta's staggering $32 billion quarterly ad revenue isn't just about size; it's about strategy, systems and execution as well.