REI Wealth Monthly Issue 01 | Page 45

DEDUCT YOUR VACATION BILL WALSTON Records to Keep Remember the old saying about real estate. . . Location, location, location. Well with the good old Uncle Sam the rule is. . . Documentation, documentation, documentation. Make sure that you set up a trip folder. Keep copies of e-mails setting up appointments with realtors. Take photos of properties you view. Take notes at meetings you attend. Keep copies of MLS print outs. Make sure This means that you can take individuals with you and deduct 100% of their business travel as long as they are directly associated with your business in any one of the preceding three circumstances. Make Weekends Deductible your business appointments are recorded in your calendar. This all will establish the business intent and purpose of your travel. And remember, without business intent there is no deduction. So, there you have it. When you are a small business owner (and as a real estate investor that How would you like to treat Saturday and Sunday as includes you) the tax law turns in your favor. What business days without ever working on the weekend? were once personal non-deductible expenses have You can – if you know what you are doing. As long as now become tax-deductible business expenses. Friday and Monday are business days then Saturday With proper planning, you can literally make your life and Sunday are business days as well – even if you tax deductible. party like a rock star on the weekend! This is a very DISCLAIMER AND/OR LEGAL NOTICES: popular strategy; however, its success rests on your The information presented herein represents the view of the author as of the date of publication. Because of the rate with which conditions and tax laws change, the author reserves the right to alter and update his opinion based on the new conditions. ability to substantiate your claim that there was legitimate business activity on both Friday and Saturday. If advice concerning legal or tax related matters is needed, the services of a fully qualified professional should be sought. This article is intended for informational purposes only, and not intended for use as a source of legal or accounting advice.