THE MONEYPAPER,
555 Theodore Fremd Ave., Ste. B-103, Rye, NY 10580.
Monthly, 1 year, $108.

Tax-Deductible Vacations

       Vita Nelson: "If you have self-employment income, or if you run your own company, you may be able to write off some of the costs of your summer travels (or vacations at any time of the year).
       However, the IRS takes a hard look at T&E deductions so you need to prepare a paper trail. If you can show where you traveled, whom you entertained, how much you spent, and your business purpose, legitimate deductions will be sustained.
       Suppose, for example, you take a four-day business trip. After you've completed your appointments, you spend two days at the same hotel, playing tennis and shopping for antiques.
       The challenge, then, is to show that the first four days really were spent on business.
       Before you go, compile a list of clients, prospects, suppliers, and other business contacts in the area of your destination. Maintain a log while you're on the road and note actual results (new accounts, for example) of the trip.
       What expenses can you legitimately deduct? Besides airfares and hotel bills, car rental costs are deductible. Meals you eat while away from home on business are 50% deductible; the same 50% rule applies to business entertainment outlays.
       If you stay over a Saturday night, in order to get a lower airfare (remember to document the differences), you probably will be able to deduct at least some of your weekend expenses, too."

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