5 Tax Tips for Travel Advisors in 2019

This tax season is popping bent on be an amazingly difficult year for several Americans UN agency expected a refund from their 2018 tax returns, however, didn’t comprehend. An amendment within the income tax rates for the year seems to possess backfired. we tend to all are taking home larger paychecks all year, however as we tend to file our tax forms, we tend to square measure finding that we tend to owe a lot off of the money back.

So even before addressing the changes in tax laws for 2018, this can be a year to urge your tax house so as. Here square measure some tips to form the most effective of 2018 and find prepared for 2019.

1. Hire a professional tax advisor:

Whether it’s taxes or travel, simply because you'll be able to do one thing yourself, doesn’t mean you must. “Do not suppose you'll be able to be knowledgeable in each travel and accounting. the foundations in taxes amendment as quickly because the costs of air do!” same Suzanne Hair, owner of broker Suz. “Be associate degree knowledgeable in what you are doing (travel) not in what the particular accounting knowledgeable will.”

2. Note the new small-business deduction:

New for 2018 is a 20 percent deduction on earned income for flow-through entities, including sole proprietors, partnerships and S corporations. If you earned $20,000 selling travel part-time, for example, you can automatically deduct 20 percent, or $4,000. Some income limitations apply, though.

3. Health insurance is no longer required — but if you pay it, deduct it:

The one huge amendment in tax laws for 2019 is the repeal of the penalty for not having personal insurance coverage. “Now individuals will go while not insurance — however, I actually wouldn’t advise it,” says certified public accountant Scott Boyar in Charlotte, North geographical region. For 2018, meanwhile, one amongst the foremost frequent errors of small-business homeowners isn't deducting their insurance premiums. (You additionally could also be able to deduct insurance premiums.)

4. Hold onto your receipts:

Perhaps the largest mistake individuals create is a basic cognitive process that a MasterCard receipt is a nice enough backup for business expenses, Boyar says. If you're audited, you actually ought to show Associate in Nursing itemized receipt indicating precisely what you got. It’s a really smart plan to scan the receipts further, as, by the time you're audited, 2 or 3 years down the road, odds square measure the originals are going to be light and undecipherable.

5. Rethink your T&E:

For the 2018 tax year, you now not will deduct monies spent “entertaining” shoppers at events and shows. however, you'll deduct travel expenses and fifty p.c of meals at that you speak business. take care to carry onto receipts for all the world you pay to attend trade shows, fam trips, conferences, and conventions, at the side of documentation proving that your travel was business-related, like conference registration forms. (And once taking a private or fam trip, put aside a couple of hours on a daily basis for web site inspections and business conferences to show it into a deductible business trip, suggests Roy Gal of reminiscences Forever Travel cluster.)