Article Date:
December 2014

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3 Rules Ensure That You Can Deduct Lodging Expenses under New Regs—Even When You’re Staying Close to Home!

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.

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