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. This means 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.

Another important thing to remember is what counts as a “business day”. Standard work-from-home activities like taking calls from your hotel room or working on your laptop does not count. You need to use the physical location for business.

Here’s an Example

You travel to Orlando for a business 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!