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.
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);
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.