Recepts App. Blending professional engagements with leisurely pursuits—commonly known as ‘bleisure’ travel—offers a splendid opportunity to harmonize productivity with relaxation. However, to ensure a smooth tax experience, it’s imperative to grasp which expenses are legitimately claimable. Below are five insightful strategies to assist bleisure travellers in mastering their tax management and sidestepping potential pitfalls with the American Tax Office (IRS).
1. Keep Detailed Records of Business Expenses
When blending business and leisure travel, it’s important to meticulously document your work-related expenses. Instead of relying on a traditional travel log, use a receipt app like Crunchr.com.au to easily capture and organize all your receipts. This modern method not only provides a thorough record to support your claims for business expenses but also speeds up the reimbursement process.
2. Claim Weekend Accommodation if Work Extends
If your business trip spans from Friday to Monday, you can claim the costs of weekend accommodation. However, keep in mind that any extra expenses for including a family member or partner—such as additional accommodation, meals, or entertainment—are considered personal and should not be claimed.
3. Include Client Entertainment Costs When Applicable
Client entertainment expenses may qualify for deductions if they are directly connected to business activities. For instance, if you take a client golfing to negotiate a contract or discuss business matters, those costs could be eligible for a tax deduction. Ensure the primary purpose is business-related; such claims are generally more pertinent for business owners than for employees.
4. Understand What Travel Costs Are Deductible
Beyond claiming mileage for your personal vehicle, various travel expenditures—such as those for public transit, parking, tolls, taxis, rideshares, flights, and dining—are eligible for deduction solely when tied to an overnight business journey. It is essential to verify that these costs have not been reimbursed by your employer to avert any complications with the American Tax Office (IRS).
5. Avoid Reclaiming Reimbursed Expenses – Using a Receipts App
Typically, the bulk of out-of-pocket work-related expenses you initially cover will be subsequently reimbursed by your employer. To circumvent attracting undue scrutiny from the IRS, it is imperative to meticulously ensure that these reimbursed costs are not erroneously re-claimed on your tax return. However, you can still claim daily travel allowances and mileage for your personal vehicle used for work purposes.
For bleisure travellers, the meticulous upkeep of detailed records and a nuanced understanding of claimable expenditures are essential for navigating tax obligations and adhering to American tax regulations. Leveraging a simple receipts app can significantly streamline and refine the process of tracking and organizing receipts, enhancing both accuracy and efficiency.
