Spending more time on business than pleasure usually protects the deduction. Deduct travel expenses for seminars, conventions, sales meetings in the United States on trips primarily for business. Deduct destination business expenses like hotel costs but no travel expenses on trips primarily for pleasure. Primary is usually determined based on the time spent on each.

Regardless, some deductions are limited: Meals including taxes and tips are only 50% deductible, and unreimbursed travel expenses of an employee are considered an itemized deduction, with limitations accorded to them.

Assume you go to a business convention out of town. You spend five days at the convention and two days visiting your parents on the way back. The round trip travel cost $1,000, but $800 without the stopover. So deduct $800. At the convention you spend $700 for room and tips and $300 for meals. So deduct lodging and half the cost of meals-or $850.

Consider two caveats on any travel: Records and receipts are crucial. And a trip to either a financial planning seminar or convention isn't deductible except in the investment business. The Internal Revenue Service says managing personal investments is not a business.

Still, topping off that business trip with a few days of vacation makes sense. And, considering your taxing lifestyle, haven't you earned it? (more at Other Deductions)

Released 5-6-02