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Summertime tax tips, more reasons to take a vacation.

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Summertime tax tips

Summertime fun can be made more enjoyable by adding these tax saving tips.  Our expert outsourcing team at SG Partners can do the work for you while you frolic in the sun worry free.

Here are some tax-saving ideas to consider.

  • If you have summer travel plans and the primary purpose of your trip is to increase your business, you can deduct all the travel costs. This includes expenses related to travel from your business destination (in both directions), all business-related costs such as; hotels and promotional items and business meals.

You can add some extra days on for pleasure, the only thing you cannot deduct are the costs related to the pleasure portion. Dinners or activities conducted during the personal time are not acceptable expenses.  You must clearly indicate which days were related to business and otherwise.

Including a spouse or friend on your trip is permissible, but you can’t deduct the additional costs for that person.

  • If you itemize your deductions, you can even deduct the mortgage interest and property taxes paid for your vacation home. A boat or RV can qualify as a vacation home if it has sleeping quarters, cooking facilities, and a bathroom. If a retreat also serves as rental property, you can control your tax deductions by changing the number of days you use it for vacation.
  • If you and your spouse work, the cost of sending your children to a summer day camp may qualify for the child care credit.
  • If you own your own business, consider hiring your child for the summer. Your child can earn up to $5,800 tax-free this year, and your business is entitled to a deduction for the wages paid. You must pay your child a reasonable wage for the work performed. If your business isn’t incorporated, a child under 18 is not subject to FICA taxes.

When you consider these tax saving benefits coupled with the knowledge that our expert financial team at SG Partners is taking care of your business while your away, there is no reason not to take a vacation this summer.  In fact, this is all the more reason to do so.

A personal tip: Incentive travel helps motivate employees and you can use it as a means to increase production and sales by offering a free trip as a contest.