Estimated tax tip savings: If you spent $3,700 on deductible lodging over the past year, depending on your tax bracket you could save up to 28 percent—or $1,036—which is a tidy discount on your hotel bills.

Until recently, the IRS would not allow you to deduct expenses for lodging unless you traveled away from your tax home.1

Good news: The rule has now changed, and it opens up some great tax deduction opportunities.

In particular, this is a tax-savings boon for business owners who

drive a lot for business and occasionally find lodging within their tax home (which is generally the city or locality in which you work most of the year);2

want to stay at a hotel the night before or during a business activity across town; or

find a good business reason to have a “hotel staycation” in a fun area.

Follow These Rules

The best way to make your local lodging expenses deductible is to meet the “safe harbor” test in ... Log in to view full article.