Tax Tip of the Week
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For the week of
July 3, 2000
"I do it because it is tax-deductible."
How often have you heard someone say that they are going on
a trip or buying a certain item because it is "tax-deductible"?
Getting a tax deduction for an otherwise legitimate expense is the frosting on the cake, so to speak. If you have
a business reason to travel to a certain part of the world and it makes good business sense to do so, by all means
go. But don't tip the scale in favor of going because of the tax benefit.
Here is the problem with doing it for tax reasons. You get only as much tax benefit as your tax bracket allows.
If a business trip costs you $1,000 and you are in the 28% bracket, you will save $280 on your income tax bill.
In other words, the trip cost you $720 and it cost the government $280. So, if spending $720 of your own money
makes the trip worthwhile, go for it.
All business and investment decisions should be financially sound. The tax benefits should never be the sole determining
factor. If you would like assistance with your tax planning, please contact us. We are here to help you.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
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to receive other tax-cutting information from time to time, please contact our office. We're here to help.
