Hello Spring!

If you enjoy a good weekend getaway, but also want it to be deductible, then keep reading!

In the accounting world we call this strategy “wrapping a weekend”. The IRS states that if you travel for business and work both Friday AND the following Monday, then the Saturday and Sunday in between count as business days. What that means for you is that your hotel and meals during that weekend are entirely deductible. Woot woot!

Prior to Tax Reform in 2018 your weekend entertainment and activities would also have been deductible, but since they eliminated the entertainment expense deduction those no longer can be taken.

Here’s an Example

You travel to Orlando for to a conference which takes place on Thursday and Friday. You plan to stay the weekend and then meet with potential clients on Monday. Your hotel and all meals are deductible on Saturday and Sunday. However the yoga class you go to Saturday morning is NOT deductible.

Being able to write-off your hotels and meals make for a nice little discount on that weekend getaway! Just remember to document your business activities on both Friday and Monday so you have proper records!

Candace is the founder of NewWay Accounting and is a CPA who specializes in working with fellow entrepreneurs. She strives to take the fear and anxiety out of taxes and help empower small business owners to feel more confident and in control of their finances.