Intent Matters For The IRS and Tax Deductions

Intent matters big time when it comes to tax deductions. And here's what I mean...

I'm talking to a client the other day... and we get this all the time... "well we're gonna be shooting content so it's deductible, right?"

And then I had to politely burst his bubble. "Well, you just told me you're going for a wedding, I didn't hear any business intent." Even if he is "shooting content" while on his trip... he's not a youtuber. So I asked, "Well, for it to be a legit tax write off, you should have other business trip expenses... so if you're filming, are you also renting a peerspace spot? Are you getting costumes, make up, stuff like that? Are you meeting other people in your industry to collaborate?" 

You might be guessing this already, the answer was "no." And that's totally okay, it's just that... well if you're going on a business trip, then there should be some business expenses. Based on my conversation with this client, his trip doesn't pass the sniff test. While I like his enthusiasm.... naw, not a business trip. 

And that's the thing, I'm glad he asked the question, just as long as he's willing to accept the answer, yaknow. 

Of course, the same tax principles apply to you and your business, yes you can absolutely have a business trip and enjoy yourself, as long as your intention is business, not a personal trip where you happen to do send an email or shoot a 30 second reel. Intent matters to the IRS and your transactions, or lackthereof, very clearly show your business or personal intent.

Wrapping your weekend is a great way to take a business trip that is legitimately deductible, plus have two open personal days during the weekend :)

JT explained this with a client one day and luckily we caught it on video for you to enjoy as well. watch here https://www.instagram.com/reel/C8V0oPes_ki/