Posted on: 24 June 2015
Taking a holiday can be expensive but with a little prior planning and a bit of creativity, you may be able to deduct some of those expenses on your taxes. Check out these accounting ideas. They don't work for every situation, but they may work for yours:
1. Plan a business trip
If you own your own business, you can write off the cost of a business trip on your taxes. Find a business conference in a fun location, fly there and attend it, but then, have your family or friends meet you there and stay a few extra days.
Although you won't be able to write off everything, you will be able to write off the costs you incurred for business – your airfare and the hotel and food bills during the duration of the convention.
Don't have a business? Start a small one selling crafts online or doing something you love. Then, find a conference, a class or some other event you need to attend and use the formula above to make your business trip into a holiday.
2. Donate a holiday to a silent auction
This option is risky, but if you donate gifts to silent charity auctions, you can claim that cost as a tax write off. In order to take your holiday, however, you will need to bid on it and win. Hopefully, you will get it for a price less than you paid.
You can write off the amount of your original purchase for the holiday you donated to to the auction, but you cannot write off the amount you spent at the charity auction. Technically, that amount is not a donation as you received something in exchange for it.
3. Find a medical reason to travel
Of course, illness is not fun but if you have to travel for medical reasons for yourself or a loved one, tack a holiday onto the experience. If you are feeling up for it, you can take a holiday near the place of your medical appointment, and although you cannot write off the travel expenses for the holiday portion of your journey, you can write off everything related to the medical journey.
4. Talk with an accountant
If none of the above ideas help you, it may be time to talk with an account. If you are travelling to donate time for a volunteer organisation, to scout a new location to open a new business or for school, you may be able to write off some of your expenses on your taxes.
Even if your accountant cannot help you figure out how to write off your holiday on your taxes, this professional can help you figure out other ways to reduce your tax burden and optimise your income. Contact a company like CMA Chartered Accountants to find out more and get help.Share