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Travel has always been an exciting
field to get into because of the perk & benefits
of being a travel agent and an opportunity to see
the world. Travel agents have always been extended
certain discounts and privileges that are only available
to those with travel agent credentials. Beautiful
resorts around the world allow travel agents to
stay at their property for a fraction of the cost
and at the same time treat them like kings and queens
because they know that it is the agents that will
recommend their hotel or resort to other potential
guests. Another benefit in the travel industry is
the tax relief. It is our business to travel and
view various properties around the world and as
such it is a business expense. As such, we write
off the entire trip as a business trip and take
huge tax deductions because of it. See the difference
below.
Tax
Advantaged Travel |
Employee
|
Travel
Business Owner
|
| Earn |
$6,000 |
Earn |
$6,000 |
Pay
Tax, Social Sec.,
etc. @ 33% |
$2,000 |
Pay
Travel Expense
@ 50% off |
$2,000 |
| Net
Income |
$4,000 |
Net
Income |
$4,000 |
| Pay
Travel Expense |
|
Pay
Tax, Social Sec., |
|
| (Annual
Vacation) |
$4,000 |
etc.
@ 33% |
$1,320 |
| |
|
|
|
| Great
Memories, Great Pictures, Great Fun, Great
Sun |
$0 |
Same
Great Memories, Great Pictures, Great Fun,
Great Sun |
$2,680 |
How Would You
Rather Travel? |
This is an illustration only and is only designed
to show a possible scenario based on similar incomes
and the travel
business owner using a 'fam' trip as part of a
business expense
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