3 Ways To Turn Your Summer Expenses Or Activities Into End-Of-Year Tax Deductions
Summer can be a pretty expensive time of year. This is particularly true if you plan on having your kids attend summer day camps and taking family vacations. Luckily, you may be able to deduct some of these expenses to reduce your overall tax liability for the year. Here are three ways to save:
1. Conduct Some Business On Your Vacation.
If you and your family plan to take a summer vacation, you may want to consider how to write off part of the trip. With a bit of strategic planning, this is possible. You can't write it all off, but you may be able to write some of it off. The key is to make sure that you perform some sort of business activity while on the vacation. For example, you could send your family to the beach one day and you could head to meet a client or business partner. Alternatively, you could attend a convention, course or conference that somehow betters your knowledge or skills of the business that you are in. In the end, you may be able to deduct as much as half of your meal expenses as well as some of your lodging and transportation expenses.
2. Work While the Kids Are at Day Camp.
If you plan to send your kids to a summer day camp, you may be able to use the camp fees as a tax deduction. This is only if you are sending them under certain circumstances. For example, if you are sending them to day camp so that you have time (and peace and quiet) to work or to search for work, then you may be able to write the expenses off. Keep in mind that it appears the IRS only offers a 35 percent deduction of up to $3,000 (one qualifying person would be $1,050 deduction) or $6,000 (two or more qualifying persons would be $2,100) for summer day camp and not overnight camp or tutoring sessions.
3. Clean and De-Clutter the House to Donate to Charities.
With the kids out of school, it is a great time to get them to go through their clothes, toys and other personal belongings to see what they need and what doesn't fit anymore. Since you are having them do this, it makes a good time for you to go through your own things as well. Instead of having a garage sale or selling them on eBay for some extra cash, you should consider donating these items to an IRS-qualifying charity so that your donation (with valid proof) can be used as a tax deduction at the end of the year.
If you need more tips on turning your summer expenses into tax deductions, consult with a local accountant (such as one from Wiggins, Smit, Burby, Reineke, & Company P.A.) or individual experienced in money, finance and business taxes. You will truly be amazed at how much you can deduct from summer activities and expenses to reduce your tax obligation at the end of the year.