FORTUNE Small Business:

Can I write off my international travel?

A home-based travel agent checks in with Ask FSB for advice on what she can deduct.

Subscribe to Top Stories
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

jet_gulfstream_travel.03.jpg
Ask FSB
Get small-business intelligence from the experts. Here's a chance for YOU to ask your pressing small-business questions, and FSB editors will help you get answers from the appropriate experts.
Your name:
* Your e-mail address:
* Your city:
* Your state:
* Your daytime phone #:
* Your questions:

(FORTUNE Small Business) -- Dear FSB: I have a home-based travel agency. Can I deduct my international travel expenses and educational FAM trips?

- Nancy Vollmer, Holloway, Minn.

Dear Nancy: As you know, a FAM or "familiarization" trip, refers to a reduced-cost tour offered by a group of suppliers to educate travel agents about their destination and services.

For example, a resort property in Fiji might team up with local restaurants and tour operators to present a discounted FAM trip for agents from the United States. The idea is that you, the travel professional, can then better share knowledge about these experiences with your clients.

As long as you are a profit-seeking travel agency business - even if you operate out of your home - you can deduct all business-related expenses on the federal Schedule C form.

This applies whether the travel is local or international. Meals and entertainment are generally also deductible, says Martin Chan, a Philadelphia CPA.

Note that the primary purpose of any trip for which you plan to deduct expenses must be business. You cannot deduct expenses from family vacation or leisure trips.

Thoroughly document your expenses with receipts and written records, advises Nina Cunningham of Liberty Tax Service, a nationwide income tax preparation company headquartered in Virginia Beach, Va..

Remember also, Chan says, that travel agents who work from home can deduct the percentage of home utility and maintenance bills used to maintain and run the business. Use form 8829, "Expenses for Business Use of Home."  To top of page

Photo Galleries
Here are the 20 most ticketed cars in America The racy Subaru WRX tops the list, but some of the other ticket magnets will surprise you. More
Lamborghini to unveil 910 horsepower plug-in hybrid The Lamborghini Asterion concept car will have a V10 engine and three electric motors. More
The weapons of The Walking Dead Zombies are fiction, but the weapons on The Walking Dead are real. More
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.