Yes, even that trip to Florida might be partially tax-deductible
Running a business is hard work. So when it’s time to take a break, you’ve earned it. But what if you deduct vacation expenses to lower your tax bill?
That’s right—depending on how you structure your trip, some of the expenses might be deductible.
But don’t book that beachside resort just yet. The IRS has very specific rules about what counts as a business expense, and it’s easy to get it wrong.
Here’s how business owners – from dentists to real estate investors to freelance consultants—can take a vacation and still write off part of the cost (the legal way).
Step 1: Make Sure There’s a Real Business Purpose
To deduct any part of your trip, its primary purpose must be business-related. This doesn’t mean you can’t enjoy yourself, .mn but it does mean the work part has to be legitimate and central to the trip.
So what qualifies?
- Attending a conference or professional training
- Meeting with clients, suppliers, or potential partners
- Touring business locations or facilities
- Scouting real estate for your business
- Conducting site visits or due diligence
Here’s the key: the business activity can’t be an afterthought. It needs to be planned ahead of time and clearly related to your actual business.
Example: You’re a marketing consultant going to a 2-day workshop in Austin. You fly in Thursday, attend the event Friday and Saturday, then stay through Monday to enjoy the city. The workshop is your primary reason for travel, so the airfare and the hotel for the business portion are potentially deductible. More on that below.
Step 2: Track Time and Separate the Business from the Personal
The IRS doesn’t mind you mixing business with pleasure—as long as you’re clear about which is which.
So here’s what to do:
- Keep a daily itinerary. Mark down which days are business-related and what exactly you’re doing.
- Log appointments or meetings. Save emails confirming meetings or event registrations.
- Save receipts. Especially for travel, lodging, and meals related to business days.
If you’re traveling within the U.S.: As long as the majority of your days are for business, the full cost of round-trip airfare can be deductible. That’s a big win. But hotel and meal expenses still need to be allocated based on which days were business vs. personal.
What about international travel?
If you’re traveling outside the U.S., the IRS applies stricter rules. To deduct international travel expenses, the primary purpose of the trip must still be business, and you’ll need to clearly separate business days from personal ones. If more than half the trip is for business (including travel days), your airfare may still be deductible. But if personal time takes up the majority, you won’t be able to deduct your flight. Only the expenses tied directly to business days—like hotel, meals, and transportation—can be written off. Documentation matters even more for international trips, so keep detailed records of meetings, event schedules, and your itinerary.
Step 3: Look for Ways to Add Legitimate Business Activities
Let’s say you’re headed to Denver for a long weekend. You’ve got one client meeting on Friday morning- technically business, but only one part of the trip.
Want to make more of the trip deductible? Look for ways to add meaningful business activities:
- Schedule another meeting with a potential client or vendor
- Visit a competitor or similar business and take notes on their setup
- Tour a facility or supplier you’re considering using
- Host a team strategy session if you’re bringing employees along
If you do something that genuinely benefits your business and document it properly, it may help justify more of the trip as business-related.
For 2025, the 401(k) contribution limit rises to $23,500, while those aged 60-63 can make catch-up contributions of up to $11,250. This means more pre-tax dollars can go toward retirement, offering long-term financial benefits. Since this adjustment happens automatically and doesn’t need congressional approval, business owners don’t have to wait for policy changes. Still, it’s a good time to reassess retirement benefits and encourage employees to take full advantage of the increased limits.
Step 4: Know What You Can (and Can’t) Deduct
Deductible expenses (if tied to a business day):
- Airfare or mileage to and from your destination
- Lodging during business days
- 50% of business-day meals
- Taxi, rideshare, or car rental costs related to business activities
- Conference or event registration fees
Non-deductible expenses:
- Lodging and meals on personal days
- Entertainment or leisure activities (golf, spas, concerts, etc.)
- Family member costs (unless they’re employees and attending for business reasons)
Tip: Bringing your spouse? Their travel isn’t deductible unless they’re an employee of the business and have a real business reason to attend.
Step 5: Document Everything
The IRS loves documentation. If you ever get audited, you’ll want a clear paper trail to show that the business portion of your trip was legitimate.
Here’s what to keep:
- Flight and hotel receipts
- Conference agendas or meeting notes
- Emails or calendars confirming appointments
- Daily itinerary showing how time was spent
The more organized you are, the easier it will be to defend your deductions later.
A Few Scenarios to Consider
1. The Conference Trip
You attend a 3-day conference in Miami. You arrive the night before and stay an extra day to enjoy the beach. You can likely deduct:
- Round-trip airfare
- Hotel for the 3 nights of the conference
- Meals during business days
- Conference fees
You can’t deduct the extra hotel night or beachside cocktails the day after the conference.
2. The Client Tour
You plan a trip to visit three major clients across two states. You meet with them on Monday, Tuesday, and Wednesday, then stay through the weekend to sightsee.
PlannYou can deduct:
- Airfare
- Hotel Mon–Wed
- Business meals during the first part of the week
- Mileage or travel between cities
But not the weekend portion—that’s personal.
3. The Strategic Add-On
You’re already planning to visit family in California. You set up a Friday lunch with a potential vendor and stop by another business you’ve wanted to learn from. Now your trip includes a legitimate business purpose, and you might be able to deduct part of the airfare and expenses for that day.
A Vacation That Works for You – and Your Taxes
Writing off part of your next vacation isn’t about gaming the system. It’s about planning ahead, being intentional, and making sure the business part of your trip is real, valuable, and well-documented.
If you’re already spending time and money to grow your business, you might as well structure your travel in a way that works for both your goals and your tax bill.
But before you start booking flights, talk to a tax professional (like us!) who understands your business and the current IRS rules.
Use the form below to book an introductory call with our team to see how we can help.
Until next time!
Disclaimer:
This article is for informational purposes only and should not be considered tax advice. Every situation is different. Be sure to consult with your CPA or tax advisor before applying any of these strategies.
