In case you didn’t already know, I have the travel bug. It started in College when I got the opportunity to visit my UK pen pal and her family in London. Even more than the tourist destinations, I love seeing how people live differently around the world. Staying with her family allowed me a front row seat to the daily activities of a different culture. Another example is the time I went with the Rotary to Guatemala to commemorate a well to provide fresh water that they had donated to an orphanage. We stayed with a host family during that time and could visit and tour the orphanage where volunteers and the kids grew most of their own food.

As a business owner who loves to travel, whenever possible I incorporate my business when I travel so that it is an allowable business expense. As a financial advisor, I generally know a lot about taxes in the course of my work, as well as consulting with my CPA whenever needed. Whenever possible, using my business interests and developing clients along the way lets me take some interesting trips as business travel and therefore saving on my taxes, as well as making the cost of travel more affordable.

A couple years ago, I went to Europe with local business owners on a trip sponsored by the Greater Reading Chamber of Commerce. We spent hours each day chatting about our businesses and deepening our friendships while looking at the countryside from our tour bus as it roamed from town to town. Budapest, Vienna, Prague, and Bratislava were on the agenda with castles, churches, historical sites, and, of course, wineries. It is enlightening to get the perspective of other fellow business owners when you are in a foreign land. The number of hours a day spent on business versus personal vacation is part of determining the tax deductibility when combining business with vacation travel. The business portion needs to be more than four hours per day not including weekends.

The rules of tax-deductible business travel are somewhat complex.  It will be easier to plan your business trips and combine your business with vacation if you become familiar with the IRS ground rules. The tax code does allow the travel expense for your spouse if he/she is also an employee of your company.

Earlier in my career when I owned my software consulting company we did a project for an electric power company in Chengdong, China, which of course required a trip there to do the contract negotiations, project requirements, as well as the software delivery. Although I got to see more conference rooms than China, it was an experience I will remember.

This winter I am planning a trip to Zambia for an American Global Super Center Conference. This group is dedicated to building International trade between Africa and America. They are building an online marketplace so members can expand their sales through the Internet. I’ll get to meet African Small Business owners in both formal and informal settings.

I get to travel somewhere exotic, to help build small businesses, and to bring a more global focus back to my own business owner clients and friends. Three things I love to combine. Feel free to with me about your own ideas of combining business and travel to places you enjoy.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. 

As a former SCORE Counselor/trainer, small business profitability consultant, CERTIFIED FINANCIAL PLANNER™ Professional, and active member of the Berks business community, Merra Lee Moffitt keeps her eye on the needs of Berks Business owners. Having created and built her own 40-person company, she is able to assist you on how to balance your life and family goals with running and owning your small business. A recognized source on Pennsylvania business issues, Merra Lee can be reached at 610-488-7353 or merralee.moffitt@lpl.com and her website is www.merralee.net.