How to get away and make time for business planning

business planning

As a small husband-wife business, you might find yourself doing work at the office, at home and any available free moment in between. But there might be times where it’s necessary to break away from the day-to-day work in order to do long-term planning for your business. Here are 4 easy steps to turn your husband-wife get away into a tax-deductible expense.

Clearly, the IRS considers board meeting between a husband and wife as personal expenses and not deductible. In fact, the IRS has serious obstacles to prevent frivolous deductions. But, there are ways to legitimately get away from the office and plan it to be tax deductible.

1. Show a business reason for WHY you need to get away

You can’t just get away and expect it to be a tax deduction. Rather, for it to be tax deductible, it must be both ordinary and necessary. You must be able to prove that you are conducting your firm’s business. These can include things like reviewing financial reports, holding elections, creating or changing company policies, working on business plans and/or finding ways to solve problems in your company. To meet the tax code, you must show that the trip was “appropriate and helpful” for your business.

2. Spend more than half of the time on business

All your travel costs to and from the resort are deductible if you spend more than half of the time working directly on your company. You should focus on those tasks that made the travel “necessary” in the first place, like using the peace and quiet to do long-term planning. Schedule business meetings on a Friday or Monday with vendors, clients or business activities like a trade show. You don’t want it to appear that you’re taking a weekend vacation.

3. Don’t Overdo it

To qualify for the deduction, make the get-away require an overnight stay. But, don’t go crazy on the luxury or fun. A distant, super-lavish resort near several enticing attractions and sights is likely to spark the interest of the IRS. Rather opt for a discreet upscale lodge closer to home makes “better sense” for business planning.

4. Keep Good Records

Detailed records are a must when it comes to IRS scrutiny. Keep a diary of each expense along with all your receipts. Note dates and details about the business purpose of each expense, as well as the company chore that the expense was helpful in completing.

Paragon Accounting & Tax Solutions specializes in small business tax preparation, monthly accounting and payroll services in Canton, GA; Woodstock, GA; Marietta, GA; Alpharetta, GA; and Kennesaw, GA. Your business success is important to us. When you work with us, we will help you find ways to save on taxes.