Helping artists, performers, and writers become profitably creative

Dear Rex
I’m traveling to SXSW in Austin for business, and my spouse is accompanying me so we spend a day or two vacationing. How much of my trip is tax deductable?
-Creative Vacationer

Dear Vacationer,

Travel expenses include the cost of transportation by airplane, train, bus, or car; baggage and shipping; lodging and meals; dry cleaning and laundry; and tips on such costs.

You can deduct all of your travel expenses if your trip was entirely business related.

If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination.

For example: You and your spouse fly to Austin. You attend the conference during the day, your spouse doesn’t. The conference lasts 5 days and you stay the weekend, then fly home. Your plane ticket (business related) is fully deductable, your spouse’s ticket (vacation) isn’t. Of your hotel bill, the 4 nights that covered the conference are deductable, the 2 weekend nights aren’t.  Assuming you rented a car the entire time, 4 of the 6 rental days would be deductible.

The rules are a little different for travel outside of the United States.  You can read more at the IRS website.