How To Plan a ‘Workcation’ and Write Off Part of Your Travel Expenses
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Mixing business with pleasure doesn’t have to be just a dream — it can be a smart financial move. By strategically planning a “workcation,” you can enjoy a getaway while writing off part of your travel expenses.
However, before you book that beachfront rental or mountain retreat, it’s crucial to understand the IRS guidelines to ensure your deductions are legit.
Here’s how to maximize your savings while working remotely from your dream destination.
Connect Location to Job
A good rule of thumb is to focus on locations that can be directly related to your job, according to Ed Huang, a side hustle expert at SideHustles.com.
“If you are a photographer, a trip to a national park or an active urban location can be a great portfolio-generating experience. Authors, marketers and consultants can take a workcation in relation to industry conventions, network events or client visits,” he said.
So long as your trip meets the IRS definition of an allowable business expense, you can most likely deduct it from your taxes.
“It is of great benefit to have a satisfactory paper record — a conference brochure, for instance, or a conference notice,” Huang said.
Consider a Variety of Lodging Types
Finding the right lodging type can make your trip, too, Huang said. Instead of hotels, an Airbnb or VRBO extended-stay rental is a cheaper option for a week-long stay. If you don’t mind staying with others, sites like Outsite, Selina and Nomad Stays come highly recommended, he said, “as they have designated workspaces and opportunities for connections.”
If hotels are your style, chains like Marriott and Hyatt have workcation options, such as Wi-Fi and office space.
Budget Wisely and Creatively
Budgeting wisely is also a must, however, Huang said. While you might be able to deduct a pricey hotel, if there were more affordable places in the same area, it makes more sense to opt for that.
“If there is a travel rewards card, it can be used for flights, accommodations or meals in points. Small businesses have business discounts on several airlines, and various co-working facilities have short-stay or daily pass facilities for digital nomads,” Huang said.
He also recommended, if traveling abroad, a mobile Wi-Fi device in “net-unreliable regions.”
Nomad List is a great tool for comparing a destination on important aspects of travel, he said.
Consider Work Exchanges or Trades
Another great solution is to stretch your budget on work exchanges, such as housesitting, Huang said.
“Workaway pairs visitors for short-stay work in return for lodging.”
If you have skills like marketing, photography or web design, you might be able to do some trades for reduced fees on stays at hotels and resorts.
Document Everything
To make it all tax-deductible, document everything, Huang said. “Ensure you track your spending via apps like Expensify or QuickBooks, have all your receipts and document precisely how your trip is directly related to your business.”
While combining business and play is fine, the IRS wants evidence of business being your primary motivation for traveling.
“Having a calendar of scheduled work events can go a long, long way in helping this.”
Network Locally
Finally, Huang suggested you make your workcation worth it by taking advantage of in-city network opportunities.
“Go for industry events, co-working events or meet new clients when in town. Tools such as Meetup, LinkedIn events and Eventbrite can help find related events that make your trip worthwhile, as well as your case for business deductions.”
With a little planning, a workcation can be a great solution for staying productive on a discovery trip to a new place, all while making smart financial choices. “The trick is balancing traveling, scoring great deals and documenting everything so maximum deductions can be claimed,” Huang said.
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