Tax Tip #187

Self-employed individuals can travel out of town within the USA and deduct travel, lodging & meals. What happens if you travel for one week, in which 4 days are business and 3 days are pleasure? The cost of meals & lodging incurred during the business days are deductible. 

Quiz: How much of the travel – say the plane fare in this example — is deductible?

A. All

B. 4/7

C. 3/7

D. None

Quiz #2: How much of the travel is deductible if 4 days are pleasure and 3 days are business?

For the former, the answer is A and for the latter, the answer is D. 

Want to plan prior to traveling to maximize the tax benefit? Reach out to a team member to see how Goldstein & Loggia can help.