Business Travel Tax Deductions

Many of the expenses involved in a business trip are tax deductible

Those who have to do a lot of traveling for work will be relieved to know that you can deduct many of those expenses and thus significantly lower your tax bill.

What travel expenses can I claim?

According to the IRS, you can claim the “ordinary and necessary expenses of traveling away from home for your business, profession, or job.”

Be warned: the expenses cannot be “lavish or extravagant” in the eyes of the IRS. Obviously no personal expenses are deductible either. It might make sense to exclude questionable expenses from your return as they can increase the chance of you getting audited.

The travel expenses you can deduct include Continue reading “Business Travel Tax Deductions”

Freelancing, Federal Business Income Tax, and You

If you’re a small business owner, a Fortune 500 company, or somewhere in between, chances are you’ve had to deal with freelance employees (aka 1099 employees aka contract employees). These are people who, rather than working for your company, work for themselves. Instead of coming in from 9-5 every day, they work on a single project or for a few hours a day. And they are also affected greatly by federal business income tax law.

And, of course, when someone you are using is affected, your business is affected too. Here’s the lowdown on how federal business income tax affects your freelancers and your company:
Continue reading “Freelancing, Federal Business Income Tax, and You”