How to Write Off a Business Training
Guest contributor, April McDaniel, CPA of Kopsa Otte
Are you considering attending business training for your salon, spa, or medspa this year?
Thinking about the costs?
Let's talk about what that training really costs when you consider the tax benefits of the expenses.
The short answer is most expenses related to training travel are deductible as long as you can show that your attendance benefits your business.
What does that mean?
Let's use the example that you spend $1,000 total on your business trip. Do it right, and it really costs you an average $750. That's a savings of 25%! Of course, this varies based on your personal tax bracket, but you get the point.
But wait…. the IRS has some rules on how to make sure these deductions aren't disallowed if they come knocking for an audit. Documenting the business purpose and keeping receipts if the expense is over $75 are two examples. In most cases, the credit card statement is not enough documentation.
Here are some examples of deductible travel expenses:
- Travel by airplane, train, bus, or car between your home and the event.
- Fares for taxis or other types of transportation between the airport and your hotel, between your hotel and the training location, and to and from a business meal.
- Shipping of baggage.
- Using your car while at the training: You can deduct actual expenses, or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
- Lodging – must have a detailed list of charges.
- Non-entertainment-related meals.
- Dry cleaning and laundry.
- Tips you pay for services related to any of these expenses.
Remember, if employees travel with you and request reimbursement of their expenses, you must have an Accountable Plan document in place and gather the required documentation from them to reimburse them and deduct the expenses.
Ready to get learning? Check out Strategies full schedule of salon, spa, and medspa business trainings here.
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