Latest news with #BarbaraSchreihans
Forbes
01-07-2025
- Business
- Forbes
Does Your Summer Travel Qualify For A Business Write-Off?
Barbara Schreihans, CEO and Founder of Your Tax Coach. Sunshine. Poolside vibes. Piña coladas. You're out here trying to live your best life this summer … and guess what? You might be able to write off a chunk of it on your taxes. (Yes, legally. Yes, even that first-class flight.) If you're a business owner, listen up because you may be able to take that trip and pay less—if you follow the rules carefully. Here's what you need to know. Lead with business intent. To qualify, the main reason for a trip must be business. It can't be a 'let's bring my laptop and hope for the best' situation. Before you book that beachfront suite, ask yourself: • Are you attending a conference? • Meeting with clients or vendors? • Hosting a team retreat? • Scouting real estate or filming content for your brand? If the answer is yes (and you can prove it with proper documentation), then you're off to a good start. The IRS expects written documentation, such as an itinerary, a registration email, meeting confirmations—whatever you need to show the IRS that this isn't just a 'work from beach' vacation. Poor documentation can lead to problems during an audit. What qualifies as a write-off? Once a trip is officially a business trip (meaning 50% or more of the days are business-related), here's what leaders may be able to deduct: • Airfare (yes, even baggage fees) • Hotel or other lodging (on business days only) • 50% of meals • Ubers, Lyfts, parking, rental cars, tolls • Wi-Fi and other business-related tech What's not deductible? • That sunset sailing cruise • Spa treatments, Disneyland tickets or anything not business-related • Expenses for spouses or kids (unless they're on payroll) Tracking everything: The IRS takes documentation seriously. Documentation is critical for compliance. Because if the IRS ever comes knocking, business owners must show receipts (literally and figuratively). The IRS may look for detailed calendars of meetings, receipt documentation and notes about what was discussed, who was there and how it benefited your business. Some entrepreneurs use a business credit card for all travel expenses. This approach can simplify expense tracking and may generate reward points. Before you book that flight, consider calling your CPA. I know, this is not as fun as searching for beachfront villas. But one quick conversation with your CPA could save you money (and keep you out of trouble). Rules change. Interpretations vary. And they can help you structure your trip so you don't miss deductions while staying compliant. Watch out for these common pitfalls. • Not documenting business purpose clearly. During an audit, vague notes won't cut it and could result in denied deductions and penalties. • Mixing personal and business travel without a clear breakdown. If a leader decides to add extra days, only the business-related days are deductible. • Assuming all expenses are fair game. Some items (like extravagant meals or luxury perks) may raise red flags. • Failing to meet the 50% business-use threshold. That's the minimum for a trip to qualify for business deductions. What's the bottom line? When mixing business and pleasure, business must lead the way. It's important to keep receipts, stay within IRS rules and document, document, document. Because the only thing better than a summer getaway is one that helps grow your business and slashes your tax bill—when done right. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Forbes
09-04-2025
- Business
- Forbes
Family Tax Planning Strategies For Business Owners To Preserve Wealth
Barbara Schreihans, CEO and Founder of Your Tax Coach. getty Business owners: Imagine your wealth creating a financial strategy that is passed down, improved upon and, most importantly, protected through generations. This is not just about saving money; it's about creating a financial plan that shields your hard-earned cash from unnecessary tax loss. Here's one game-changing strategy many business owners miss: strategically employing family members. Because when you hire family members in your business, that means you can shift income to a lower tax bracket, provide them real work experience, potentially eliminate taxes on their earnings, and help them fund future education or investments. Pro tip: Make sure the work is legitimate and documented. Once you start employing family members, you may also want to start learning about the world of family trusts. Because you need to understand this: Family trusts aren't just for mega-millionaires. They're powerful tools that can protect assets from potential future legal challenges, provide tax-efficient wealth transfer and give you more control over how and when your assets are distributed. I think everyone should have a revocable living trust and will so that you can avoid the headache and legal battle of probate—and then as your assets, net worth and business grows, consider adding in other types of trusts. They're just another tool in your financial strategy plan that can help you move wealth to the next generation while minimizing tax impact. Now here's one of your most important wealth building strategies—retirement accounts. But don't just think of retirement accounts as a way to ensure you'll be comfortable at an older age. I recommend you really think of these accounts as a wealth multiplication tool. With smart planning, these can become generational wealth builders. Meaning, if your children have earned income (which they have because remember you have already hired them), then you can strategically contribute to their Roth IRAs. For yourself, you might consider utilizing backdoor Roth conversion strategies, which can help you move funds into a Roth IRA even when your income exceeds traditional contribution limits. Bonus: Roth IRAs don't have required minimum distributions like other retirement plans, which make them more attractive. Another really important family tax planning strategy is the gift tax—because if you have children, you're no stranger to buying gifts for them. Which would make the annual gift tax exclusion your friend. For 2025, you and your spouse can each gift up to $19,000 per person without having to file a gift tax return. Multiply that across family members, and you're moving significant wealth tax-efficiently. When you're creating a strategic family tax plan, it's important to note that your business structure may be one of the most important tax strategies you have. That means, if you're not currently structures as an S corporation, take some time to look into whether this business structure makes sense for you. It offers business owners a strategic approach to potentially reducing self-employment taxes by allowing owners to be both shareholders and employees. Because when you're carefully structured, the right business entities can open up more tax-efficient income distribution, allowing families to optimize their overall tax strategy and preserve more of their hard-earned wealth. Here's what you should know: • Family tax planning isn't about finding loopholes. It's about creating a strategy that protects your assets, minimizes tax burden and sets up future generations for success. • While these strategies are powerful, they're not one-size-fits-all. • Tax laws are complex and change frequently. • What works for one family might be less effective for another. Partnering with a tax professional who specializes in family wealth planning can help you develop a strong financial strategy. (Disclosure: My company helps with this, as do others.) It's important to review your current tax approach as an ongoing part of your business, ensuring your strategy remains aligned with your evolving family and business goals. Most importantly, approach your tax strategy with a long-term lens, looking beyond immediate tax savings to create a comprehensive wealth preservation plan that supports your family's future aspirations. Remember, the goal isn't just to save money: It's to build a financial legacy that supports your family's dreams, provides security and creates opportunities for generations to come. Your wealth story starts now. Make it a bestseller. The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
