- December 26, 2018
- Posted by: Paul Foster
- Categories: Business tips, Managing business expenses, Small business strategic planning
Wouldn’t it be great to take a vacation and get a tax deduction too?
The first person to convince is your tax advisor and the second could be by the income tax authorities.
Here are some tips to assist in your negotiations:
I am a strong supporter of getting away from the day to day business distractions
to focus on strategic business planning. In order to obtain a deduction for your vacation, you really have to work.
Be fair – Since I am also a supporter of getting away to relax and recharge the batteries, you want to enjoy your vacation. If you focus specific days and time slots to work on your business planning, you can get it done and then get on with your leisure time.
Based on the time allocated, you can now split your vacation expenses fairly between the personal component and the business component.
Document your plans – Since it is not really planning unless you commit thoughts to paper, you should be able to provide planning documents if you are reviewed. Try working on some business visioning and goal setting while away.
Be proactive – The discussion with your tax advisor about the deduction is best done before the vacation. It is always better to have a solid plan for the planning exercise.
As an alternative vacation tax deduction approach, you could always invite me or your tax advisor to join you and work on your plans with you in person!