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A Tax Savings Guide to the Holidays: Tax Deductible Business Party

You can save tax money by throwing a holiday party – but make sure it’s business-related

In parts one and two of our guide to saving on taxes during the holidays, we talked about scheduling a business meeting on the way to visit relatives and deducting part of your travel expenses as well as putting a tax deductible gift to yourself under the tree.

Another great idea for saving tax money during the holidays is to throw a tax deductible holiday party for your employees or customers.

Not only is throwing a party a great way to get into the holiday spirit, it can boost employee morale and make your customers/clients happy.

But it’s not all fun and games. Your party must be directly related to your business in order for you to deduct it. Essentially what this means is you can’t go too crazy. The IRS will disallow anything it considers lavish or extravagant as well as anything that isn’t directly related to your business. Continue reading “A Tax Savings Guide to the Holidays: Tax Deductible Business Party”

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A Tax Savings Guide to the Holidays: Tax Deductible Gifts

Ask Santa to slip a tax deductible gift under the tree and you might not have to fork as much over to Uncle Sam come tax season

Looking for more ways to save on taxes during the holiday season? Why not slip a tax deductible gift under the tree?

You could save a few tax dollars by giving yourself a tax deductible gift for Christmas or Hanukkah – or having your spouse gift it to you. Think a tax deductible gift would be boring? Think again!

Many of the most desirable tech gadgets out there might qualify as tax deductible including, computers, tablets, smartphones, Kindles, cameras, video cameras, and GPS’s, as long as you use them for business.

You can also deduct the cost of self-education, so long as it maintains or improves the skills demanded by your current job, including books, subscriptions to relevant publications, and tuition for a course. Continue reading “A Tax Savings Guide to the Holidays: Tax Deductible Gifts”

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A Tax Savings Guide to the Holidays: Tax Deductible Travel

Schedule a business meeting on the way to visit family and you can deduct some of your travel expenses

For many of us, the holiday season is synonymous with travel. Often very expensive travel. Whether it’s the ever-climbing price of gas or airfare for the entire family, travel expenses can certainly take a chunk out of your wallet.

You may be able to save a little money by scheduling a business meeting – for example with a client or a vendor – on your way to visit family and friends. This would allow you to deduct some of your travel expenses on your tax return.

According to the IRS, “travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job.” You must be away from home for substantially longer than an ordinary work day and your travel or work must require sleep or rest.

These include

  • travel by airplane, train, bus, or car between your home and your business destination
  • using a car while at your business destination
  • taxi fare and other transportation between the airport/train station, hotel, and business destination
  • meals and lodging
  • tips related to any of these services
  • dry cleaning and laundry
  • business calls
  • other similar ordinary/necessary expenses related to the trip Continue reading “A Tax Savings Guide to the Holidays: Tax Deductible Travel”