Monthly Archives: December 2011

Business Tax Deductions: Which Items Should I Deduct?



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Sometimes, travel is necessary in order to improve your business. The good news is that the IRS allows you to deduct many of the expenses that come with your business-related travel. You do need to be careful, though. Make sure that your expenses are truly related to business, and that your trip is more about business than about pleasure.

If you are on a temporary assignment (less than a year) or if you are traveling to a convention or trade show for business purposes, you can deduct a number of your travel expenses. Here are some of the expenses you can expect to deduct for business travel:

Car mileage:

If you use your car to drive for business travel, the IRS will reimburse for each mile traveled. Make sure you keep accurate records of your mileage.

Transportation costs:

You can deduct your transportation costs if you don’t use your own car, including transport by airplane, bus and train. Additionally, you can deduct the costs of taxi rides and shuttle rides between the airport/station and your hotel and between the hotel and your work location.

Lodging:

Your hotel costs are tax-deductible.

Meals:

In most cases your business meals while on a trip are limited to 50% of the cost, so keep that in mind as you eat out.

Entertainment:

If you entertain a client or potential partner, and discuss business, you can usually deduct 50% of the cost. Be careful, though, there is a fine line between business entertainment and regular entertainment.

Laundry/dry cleaning:

If you need to pay to have your clothes cleaned while on your business trip, you can deduct it.

Tips: When you provide tips to service providers and drivers, you can deduct those expenses.

Conference fees:

Conference and trade show fees are also tax-deductible – as long as you can show that they are related to your business. As long as you are meeting potential clients or partners, making useful business contacts, or learning skills that will help you better run your business, you can deduct registration fees.

Business communications:

If you incur costs related to business communications (faxes, calls, extra cell phone charges, Internet access), you can deduct those costs.

As always, whenever you plan to claim a tax deduction, you need to make sure that you have plenty of documentation so be sure to keep you receipts. You might even want to take notes about the people you talked to and the business discussions you had (especially important if you want to deduct entertainment expenses). If you have questions about whether something truly qualifies as a deductible travel expense, you can visit IRS.gov for more information.

Practical Tips When Choosing a Corporate Apartment



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Although you may only be in corporate housing a short while, it is still a good idea to be pragmatic when deciding upon a location and budget for your furnished apartment. Choosing a place to live requires a thoughtful, practical approach. Below are five practical ideas to assist you in finding the best housing for your temporary stay:

1. Budget:

Corporate apartments are typically less expensive than most comparable hotels. The key word is “comparable.” If you are looking for a bargain basement deal you may be better off with certain less desirable hotel chains. Although, if you stay in a hotel, you won’t have the advantage of a fully equipped kitchen, so you’ll end up spending more on eating out.

2. Size of apartment:

Be practical when choosing the size of the apartment. Most states have maximum tenant laws restricting the number of people per bedroom to two. These days it is not uncommon to put two twin beds in a bedroom, but expect the cost of the apartment to increase slightly because your provider will need to cover the added utilities of an extra person.

3. Location:

Choose a practical location. If you are working in Downtown Midland, it may not make sense to rent an apartment over in Odessa. Being near major highways, bus stops, or even within walking distance of your workplace will make your temporary assignment that much more enjoyable.

4. Features and amenities:

If you prefer the look of stainless steel appliances and granite countertops, let us know. Also many properties have desirable amenities such as a fitness center, a coffee lounge, a theatre room, and/or a swimming pool. Make sure you select a property that allows you to maintain important routines, such as exercising daily.

5. Pets:

Certain breeds of pets are discouraged for insurance reasons. If you have a pet, make sure you describe the breed, age, and weight to us when making a housing request. This way we can select a property for you that best meets your needs.