Happy Labor Day

Labor Day signifies the end of summer and comes with a three-day weekend; maybe a trip to the beach, the lake, or the the cabin, and a barbecue.  

Labor Day became a federal holiday in 1894, but it was first celebrated as a holiday in the United States on February 21, 1887. Of course, Labor Day is dedicated to the social and economic achievements of workers, but who wants to think about work on a federal holiday?

This Labor Day might be a good time to think about how you can use your travel as a tax deduction to offset some of the expense.

The most important thing to remember in the case of any tax write off is to keep organized receipts and diligently track your expenses. Those receipts along with itineraries, agendas, and other documentation of your expenses will come in handy if the IRS ever comes knocking.

In general, for domestic travel, if over 50 percent of the time you spend on your trip is for business, the expenses can be deducted. International travel requires 75 percent of your trip to be business.

If you do your homework, like reading IRS Publication 463, and speaking with your financial advisers, you can help offset travel and vacation expenses by combining business and leisure.