What is a Tax Deduction?

A tax deduction is an expense that is directly related to the running and building of your business.
When you file your taxes, these items will be totaled up, and the total amount will be deducted from your business income. If expenses exceed income, the excess expenses are deducted from the amount of other income on which you pay income taxes.

The IRS Standard The IRS Standard for taking a business tax deduction is VERY simple. Ask yourself this question:
                Is this expense ordinary and necessary for operating my business?

This is the standard the Internal Revenue Code uses in measuring the legitimacy of any business tax deduction. It's quite liberal in its scope. Do not make the mistake of answering this question quickly or lightly. If in doubt as to whether you should take an expense as a business deduction, ask your CPA.

Taking your vacation as a Deduction -  Would you like to take your vacation as a tax deduction? In order for a personal vacation to qualify as a business expense, you will need to work your business while on vacation.

There are varying ways to do so, but you should document your activity. You should consider doing the following at a minimum:

· Preview the Property by completing a hotel, resort, or cruise ship inspection tour.
· Fill out a hotel/resort/cruise ship inspection form.
· Swap business cards with people.
· Gather names and contact information of potential travel customers.
· Keep all of your vacation receipts from the trip.

Preview Properties As a Travel Professional (that's you with your Traverus travel business) tax experts say that you can write off your travel if you preview the property to recommend it to your clients or prospective clients... or if you have Traverus meetings while at the destination. You may even write off the expense of your spouse traveling with you if his/her presence is helpful in building your business. If in doubt as to whether you should claim an expense as a business deduction, ask your CPA in your regular meeting.

Automobile Deductions-  Your Automobile Deduction is one of the largest that is made available to a home-based business owner. The amount of the deduction is related to how much the vehicle is used for business and how much it is driven for personal use. Business miles are those miles you document used in carrying on your business. For example, if you drive from work to an opportunity meeting, the miles are business miles. Commuting miles (from home to the first stop of the day and the last stop to home) are personal miles and non-deductible.

Business cards, flyers, advertising, even the cost of getting started and maintaining your website, are all legal deductions!

Be aware that there are certain limitations on foreign travel and cruises.
If in doubt as to whether your travel expenses are deductible, ask your CPA.