"It's summertime! Can I write off any of my vacations?"
July 2, 2015
As you're planning your trip to the cool mountains or to the sunny beach, stop and ask yourself: is this vacation deductible? You might be surprised at the answer. Jeff Coleman, CPA and Principal, walks us through your options.
For Domestic Travel
A business day is defined as a period of time during regular business hours when you perform business-related activities. This is generally considered to be Monday through Friday between 9:00am and 5:00pm and excludes weekends and public holidays, although industry-specific exceptions may apply. If more than 50 percent of your vacation days are spent primarily on business purposes, then 100 percent of your transportation is deductible (including airfare, car, train, cab - even tipping, when travel related). Also, travel days are considered business days. Even if you have to move your travel date to save money on a flight, that day is still considered a travel day. However, lodging and meals are deductible only on the business days.
Of course, the sticky problem is that when less than 50 percent of the trip is business related, the transportation expenses are not deductible. However, lodging and meals are still deductible for the business days. We recommend combining and coordinating your travel schedule to get you over the 50 percent mark.
The Coleman family on a summer hiking vacation in the
Fitzsimmons Mountain Range, near
Whistler, British Columbia
For International Travel
Allocate your international travel expenses based on business days, as a percentage of total days traveled. There are a few key differences:
The transportation expenses are 100 percent deductible if the trip is predominantly for business and is no more than 1 week in length.
The transportation expenses are 100 percent deductible if the trip is over 1 week and more than 75 percent of your time is spent on business.
The transportation expenses are 100 percent deductible if the trip is predominantly for business, the employee is traveling for an employer, and the employee is not a managing executive.
Again, lodging and meals are deductible on business days only. Remember, spouse and family expenses are not deductible. Only employees who are there for true business purposes may deduct expenses.
For more information on how you can save on upcoming business travel, please give us a call.
Lisa Mazza and friends at the
Nike Half Marathon last year
Lisa Mazza, CPA and Principal, and Debbie Sanders, CPA and Senior Associate, will walk with a special purpose for the Leukemia and Lymphoma Society's (LLS) Team In Training (TNT).
Lisa will compete in the Nike Women's Half Marathon in San Francisco on Oct. 18 and Debbie will compete in the Portland Half Marathon on Oct. 4. Not only will they walk in honor of family members and friends, they will walk in honor of our colleague, Galen Gray, CPA, who passed away on June 25 after a brief, yet valiant, battle against cancer.
|Debbie Sanders and friends at last year's race!
Lisa and Debbie would like to raise $2,100 from our GC team and friends. Watch for fundraising opportunities such as office golf and homemade breakfast burritos! The $2,100 they would like to raise is significant because it represents the 210-mile John Muir Trail between Yosemite and Mount Whitney that Galen loved so much. Galen was an avid hiker, so Lisa and Debbie will use a map of the trail to show their fundraising progress.
Click here for Lisa's fundraising page and here for Debbie's page.
Manoj joined Grimbleby Coleman as an Associate after four years in banking and 2 years in the transportation industry. In this role, he assists with tax planning engagements and business returns and greatly enjoys seeing his client relationships morph from professional to friendship. Manoj holds a Bachelor of Science in Business Administration with a concentration in accounting from California State University, Stanislaus.
A long time Livingston, California resident, Manoj stays very active in his community. He's been involved with Livingston Rotary, was a Livingston Planning Commissioner, and a Livingston Medical Group board member. He also volunteers at the Livingston Guru Sikh Mission. "And I would like to get involved with other organizations in the future."
In his free time, you might find Manoj traveling, enjoying time with his daughter, or relaxing with friends and family.
His favorite number is 21. "My dad, brother and I were all born on the 21st." How's that for a coincidence?