Think you don’t need a log book to keep track of your business miles? Think again. If you want to be able to deduct those miles on your taxes, you absolutely need a written log book to track those miles. How one business owner learned the hard way why you need a mileage log In…
Travel
Deducting Foreign Travel
The IRS has very different rules for deducting foreign business travel and for deducting domestic business travel. This month, we’ll focus on FOREIGN business travel, and will follow up next month with the rules for deducting DOMESTIC business travel. First, in order to deduct the full cost of transportation to a foreign country, at least…
Claiming Travel Expenses for Your S Corporation
Can you claim travel expenses when you run your business as an S corporation? There are a few things that you should keep in mind if you are considering doing this. You are an employee of your S corporation, and this entity is separate from you. Thus, you can acquire expenses and be reimbursed for…
Tax Planning for Snowbirds
You can plan your tax-deductible business life to avoid cold winters and hot summers. Spend a moment examining the following four short paragraphs that contain the basic facts from the Andrews case. For six months of the year, from May through October, Edward Andrews lived in Lynnfield, Massachusetts, where he owned and operated Andrews Gunite…
Proving Travel Expenses after Tax Reform
As you likely know by now, your travel meals continue under tax reform as tax-deductible meals subject to the 50 percent cut. And tax reform did not change the rules that apply to your other travel expense deductions. One beauty of being in business for yourself is the ability to pick your travel destinations and…
Did Tax Reform Goof When Disallowing Deductions for Client Meals?
Tax professionals want tax deductions for business meals with clients and prospects. Business owners want those meals deductible, too. Add us to this list. We want that deduction for our clients (and, of course, for ourselves). In recent days, we learned that lawmakers did not intend to eliminate business meals with clients and prospects. We’re…
Tax Reform Creates Taxes on Employee Fringe Benefit for Bicycles
Tax reform created taxes on the employee fringe benefit for bicycles. You could (and can) deduct your costs for reimbursing employees for their qualified bicycle transportation costs. But tax reform now makes this bicycle transportation benefit a taxable event for your employees.
Tax Benefit for Business Vehicle Trade-In Eliminated
Beginning January 1, 2018, tax reform no longer allows Section 1031 exchanges on personal property such as your business vehicle.
Lock Down Vehicle Deductions with a Home Office
The IRS gives you two possible strategies for turning otherwise personal mileage into business mileage: Going to a temporary work location Establishing an office in the home as a principal office The temporary work location strategy contains some real unknowns, such as what is technically considered a temporary work location and whether the work performed…