Or will you let this deduction slip on by?
The vast majority of us go on “vacation” every year for one to four weeks. Usually people want to escape working, so deducting it on your tax return is out of the question.
That is for the “job” people. Now, the direct sales people or mlm folks are a different lot. As explained in another blog post, these people are constantly “at work”. Why? Because they are in the business of people!
When they go on vacation, they run into people! The exact “work” that they engage in is this…have meaningful conversations with people to determine if they would become a distributor, customer, or nothing.
The IRS says that in order for a day to be counted as a business day, you must work 4 hours and one minute, not necessarily consecutively. Then, you can deduct everything associated with that day. Accommodation, travel, gas, rental cars, etc.
So, if you go on vacation for 7 days, and make 4 of them business days, you can deduct 4/7 (or 57%) of your vacation costs. Being that the average vacation can cost up to $4,000, that is a $2,285 deduction.
The great thing about it is this. You have to have these conversations (contacting as we said in the old days) for the allotted time and therefore, you will automatically build your business! This is the goal. You get the deductions only when you are building your business.
You can also do other work like doing your blogs or internet activities. Your intentions should be put forth clearly in your business plan as to why you are going on vacation and what will happen. You also should keep track of daily activities of business and results of conversations.
If you want the whole story of tax deductions, CLICK HERE to get access to the Income Tax Reduction Portal. Writing off just one vacation more than pays for it!