Mixing travel for work and for vacation?

[kay02]

Hi,

I'm exploring a few ways to change up my business and some of it involves more travel than I've been doing, but I'd want to combine it with some "vacationing".  If I travel for work but lay on the beach half the time while I'm there, is all of that considered business travel?  I wouldn't have gone in the first place without the business need, but the ~entire thing~ isn't 100% business.  Has anyone dealt with this and what does it normally look like? I don't even just mean for deducting travel or whatever but also just mindset of work vs relaxation.

Thx!

[SeattleCPA]

The travel deduction rules get complicated. But for domestic travel, the trip needs to be primarily for travel. So a majority of the typical work days need to be clearly "business" days.

The old seminal court case for this is Flowers v Commissioner, so you can look this up.

You also need to document the business purposes contemporaneously. (See irs website discussion of travel and meals deductions.)

Finally, note that international travel rules are harder to work. Basically, you need to work all the regular work days if you're the business owner.

[Plina]

I am not US-based but I set up lunches or coffeemeetings with potential clients or clients so that I can show the business part of the trip if I extend a trip for personal reasons. It allows you to have free time around the meetings.

When I go for a conference to a city were I have friends or want to vacation I plan to extend the trip to meet up with former colleagues/friends, potential clients and potential collaboration partners etc. That way I can get two or three more days at the place.

[2Birds1Stone]

Nearly every small business owner and self employed person I know deducts everything humanly possible as a business expense. I'm not saying it's right, but they seem to get away with it consistently without fail. YMMV.

[Plina]

Nearly every small business owner and self employed person I know deducts everything humanly possible as a business expense. I'm not saying it's right, but they seem to get away with it consistently without fail. YMMV.

We have a lot of limits on what you can deduct and I don’t want to get the tax authorities after me. I am also setting my own working hours so if I want to go to the beach during normal working hours I go. The thing is that I still need to do my job so I might do the work after dinner with friends etc.

[LifeHappens]

Nearly every small business owner and self employed person I know deducts everything humanly possible as a business expense. I'm not saying it's right, but they seem to get away with it consistently without fail. YMMV.

This. 100% of my postage costs are a "business expense" even though I use the same stamps for sending out birthday cards. Again, not saying it's right, but the IRS has better things to do than police very small business owners. On the other hand, I have maybe 2 business lunches a year and don't bother to deduct those. I suppose it comes out pretty even in the end.