How does writing off business travel benefit me on my tax return

Forum|Forum|7 years ago
June 1, 2019
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I recently started a home based travel agency business as a part time job. I have a few business related trips I am thinking of taking this year (cruise inspections to Florida as well as a conference at an out of country resort). I live in Iowa, so I want to know how taking these trips, which WILL benefit my business in the long run, will benefit me on my tax return. Do I need to sign up for a separate Turbo Tax package to manage my part time business from our full time jobs? I work this part time business thru a travel agency out of California. My only 'pay' is the commissions I make on any trips I book.

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M

MichaelDC

Employee

Independent stylist for Stella and Dot- need to report expenses but have no revenue from this

Taking business expenses will offset income from other sources, thus lowering your tax bill (or increasing your refund). You can deduct expenses as long as you can prove that you opened or were in business in the year expenses were incurred. To be deductible, a business expense must be both ordinary and necessary. Please note that if you do not have profit for three out of five years, IRS might question your profit motive.

As a travel agent, you are considered to be self-employed. You report both income (if any) and expenses on Schedule C/Business Income & Expenses.

TurboTax will guide you step by step through the process.