Friday, February 26, 2010

Tax deductions and hotel stays.?

I am looking to buy a home 60 miles north of where I live. I have a home based biz. If I were to get a hotel room in the city where I am looking to relocate to... would that be a purchase that is tax deductable? I want to make sure I have ample time to look around and get a feel for the area. And YES I am looking to keep my biz in my home.Tax deductions and hotel stays.?
yes, its a business expense. tbaTax deductions and hotel stays.?
I'm not sure that it is a deductible business expense unless you can demonstrate that the cost of the hotel is a necessary expense of running your business. Otherwise, the IRS may consider it as personal travel or a pre-move house-hunting trip, neither of which is deductible. (See IRS Publication 521 for information on deductible and non-deductible moving expenses.) I'd be more confident if the previous answer cited an IRS publication or form that states that it is deductible, but it doesn't.





In the absence of something more definitive, I would consult with your accountant. If you accept incorrect advice from this website, you're legally liable - not the person who gave you the wrong information.

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