Since it is nowhere near April 15th, you, like us, are probably trying your very best to not think about next year's tax season; however, we wanted to give you a few tips to consider during summer that can possibly help with your 2015 tax bill.
- Adding Vacation time to a business trip: Let’s suppose you booked airfare to meet with a client. Generally speaking, you can deduct the cost of your business related expenses, which typically includes airfare, lodging, and 50% of your meals – as long as the primary purpose of your trip is business. Costs attributable to the vacation days (i.e., lodging, meals, and transportation) are not deductible. If a weekend comes between a Friday and a Monday work day, you can treat Saturday and Sunday as work days!
- Summer socials for business clients: You can deduct 50% of the costs attributable to business clients (spouses/dates included), if the entertainment precedes or follows a business meeting.
- Kids Day Camps: If your children are under the age of 13, you can claim the “child care credit” for sending them to day camp (overnight camps don’t count here), so you and your spouse can work during the summer months.
- Office-wide picnic: Typically meals and entertainment is limited to a 50% deduction, however, a business can deduct 100% of the expenses for a summer picnic if the event isn’t restricted to the higher-ups (basically, don’t lose anyone’s invitation…)
- Review your portfolio: This is the time of year you should take a look at your overall financial picture, and determine which investments have been winners in 2015 (Strong US Dollar), and which ones have been losers (hope you don’t have any investments in Greece right about now…)
- Tidying up your vacation home: Although qualified expenses can offset rental income, you can’t claim an overall rental loss if personal use exceeds the greater of 14 days or 10% of the rental time. However, time spent cleaning up or maintaining your vacation does not count as personal use, even if the rest of the family comes along!
As usual, record-keeping is the key, so make sure you maintain all receipts records for any deductions you want to claim. Have any questions or want more details, let us know!!