When you convert your vacation into a business trip, your transportation expenses suddenly become deductible.

And when you travel for business, you deduct the expenses. Think of the tax deduction as a travel discount. The size of the discount depends on your tax bracket. That could easily amount to savings of 30, 40, 50, or even 60 percent.

What kind of travel are we talking about? In general, business travel can be about as luxurious as you can dream up! For example, all of the following can qualify as deductible business travel expenses:

Airfare, including first-class tickets and even flying your own plane

The presidential suite in a luxury hotel

Rental car expenses for a Rolls-Royce

Boat tickets—and yes, this includes cruise travel1

So whether you are planning to stay in a luxury resort in the Caribbean or you simply need to visit the in-laws two states over, you could save yourself a boatload in taxes when you turn your vacation into a business trip and deduct most or all of the cost.

Types of Travel Expenses

When you travel for business, you can deduct two big types of expenses: ... Log in to view full article.