This is especially true when you are travelling, even if it is a leisure trip. You incur a number of expenses that you would have approached very differently if you weren’t in your position. Here are some examples of expenses you may be able to write off when travelling for pleasure.
Protecting your valuables
Many CEOs have important documents and even business equipment at home. If you work from home, this is especially true. When you travel, these things are vulnerable. Check out these 4 ways to protect your stuff while traveling. You never want your valuables to be stolen, and this is all the more true if you have confidential data.
Protecting your valuables while travelling can cost money. You may be considering getting extra security while you are away or hiring a house sitter. These are things that you can realistically write off as being business expenses. This is even if you would have organised security for your home regardless.
Coffee shops and coworking spaces
In 2022, very few CEOs are able to go on trips without taking work with them. You may have the intention of doing as little work as possible while on vacation, but you know you may need to log in to put out the occasional fire. This could require you to spend hours in coffee shops or find coworking spaces.
What you spend on coworking places can be included as tax write-offs. They are expenses that only really exist because you need to do work. You should expense them to your business account as well.
In the same vein, you should write off what you spend on roaming and any data plans you buy. Outside of your job, you would probably have spent some money on a SIM card in another country. However, as a CEO who needs to be available, you’re probably going to spend more.
In some places, getting signal from certain providers is not always guaranteed, while those that are reliable are more expensive. You’re also likely to spend money on an unlimited data plan or on a big chunk of data rather than getting what you would otherwise need to get by.
Hotel or Airbnb
The above expenses make sense as write-offs. After all, they are linked to your business. But can you really justify including your hotel or Airbnb? You would have gotten a nice place to stay regardless of your job title.
The thing is, you probably have business at least a little bit in mind when you book a place. Whereas in the past you would have gotten one room for you and your partner, you may have booked a two-bedroom place in case you need to attend a meeting or have some quiet time to get work done.
If you’re worried about being audited, remember that you have the opportunity to justify your tax write-offs. Furthermore, if you are not taking advantage when there really is no justification, the things that straddle the line won’t get you in trouble.
No matter how perfectly you planned your trip, there is a chance you will have to come home to tend to an issue at work. This may require you to change your flight at the last minute, leading to expensive penalties. If you plan on coming back as soon as the work is done, you will have to book an extra return flight.
You can write these off as business expenses because that’s exactly what they are. While you wouldn’t have to spend the money were you not on vacation, taking time off is perfectly within your rights as a business person.
The above write-offs may not all seem that connected to your job, but when you are running a business, your personal life is not entirely yours. Take advantage of write-offs when they are available and can be justified.