Add Tax Savings to Your Summer Plans1 min read
Summertime fun can be made even more enjoyable by adding tax savings. Here are some tax-saving ideas to consider.
* If you have summer travel plans and the primary purpose of your trip is business, you can deduct all the travel costs to and from your business destination and all other business-related costs even if you add on a few extra days for pleasure. You can’t deduct costs related to the pleasure portion. Including a spouse or friend on your trip is permissible, but you can’t deduct the additional costs for that person.
* If you itemize your deductions, you can deduct the mortgage interest and property taxes paid for your vacation home. A boat or RV can qualify as a vacation home if it has sleeping quarters, cooking facilities, and a bathroom. If a retreat also serves as rental property, you can control your tax deductions by changing the number of days you use it for vacation.
*If you and your spouse work, the cost of sending your children to a summer day camp may qualify for the child care credit.
* If you own a business, consider hiring your child for the summer. Your child can earn up to $5,800 tax-free this year, and your business is entitled to a deduction for the wages paid. You must pay your child a reasonable wage for the work performed.
For more ways to save Contact Simons Bitzer at (317) 782-3070.
By Simons Bitzer
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