Side Business with good tax deductions

[martinitosnl]

Hello

I was thinking of starting a small business that could generate some small income or at least help with tax deductions such as travel, hotels. I was thinking about a selling used cars. I have an empty lot I could use and I usually like to travel so this could ideally help me by killing 2 birds with 1 stone by taking a family member with me when I travel (vacation) and I could let them drive one of those vehicles back home. I could ideally tax deduct the hotel, mileage, some meals, etc. That would be great.
can this be done? and what kind of other type of businesses could work for travel tax deductions. thanks

[Freelancier]

Pretty much any business would allow you to deduct related travel expenses. Note the "related". IF you get audited and IF they find that your travel was not related to your business, then you will have at least one problem to worry about that could have been avoided.

And note that you cannot deduct in excess of income.

[PrintingSolutionsAZ]

As long as you are actually using your travels for business, it's legal.

Like post above, if you are claiming a trip to Hawaii, for your wedding, but tell them on your taxes, that it was for business, and they audit you, then you'll be in trouble!

[Business Attorney]

To be deductible, the travel has to be primarily for a business purpose. You can do some sightseeing while on vacation and even tack a day or two on the end of an extended business trip without changing the nature of the travel. If the primary purpose of the trip is personal, you cannot deduct the cost of the trip, only the amounts directly related to the business you conducted.

For example, if you attend a 4-day business convention in Orlando and stay an extra day to visit Disney World, that would not prevent you from deducting your travel to and from Florida or the 4 nights at the convention hotel. On the other hand, if you and your family spent 4 days at Disney World and the only business you conducted during the trip was to visit a client in Tampa, the only deductible amount is the cost of traveling from Orlando to Tampa and back. Your travel to and from Orlando would not be deductible, nor would any portion of the costs of the hotel at Disney World.

In the context of picking up a used car and driving it to your home base, you would really need to be careful to make sure that the fun was ancillary to the work, and not the other way around.

[PayForWords]

If you do that, any time you go on vacation, try to sell a car :p