Tax Preparation

Home-Based Travel Agent Tax Incentives

Tax Incentives for Work from Home Travel Agents

One of the many rewards of operating a home-based travel agency franchise is the tax incentives you may qualify for. You may be able to deduct your mortgage, property taxes, insurance, utilities and household maintenance as well as travel expenses.

According to the Internal Revenue Service, “[t]o qualify to deduct expenses for business use of your home, you must use part of your home … exclusively and regularly as your principal place of business.”

How Do You Qualify?

There are some rules for claiming the deduction, such as personal activities like eating or watching TV cannot be done in that part of your home. It must be dedicated to conducting business. However, the IRS does not stipulate whether that space is a desk or an entire room. In many instances, you may be able to write off more than just space. For example, housing expenses, such as utilities, and mortgage interest may qualify as deductions.

What Else Can You Deduct?

Since you are in the travel industry, you may also be able to write off travel expenses provided it’s for the benefit of your business. For example, if you write about the location you’re visiting and convey that information to customers, it counts as benefiting your travel business. Just make sure you document the trip and keep receipts. Costs associated with attending travel conferences are also tax-deductible.

Networking in person will be part of getting started as a home-based travel agent. The costs associated with meeting with people – the cost of conference attendance, renting a booth, driving to networking events – is also deductible because it counts as business development.

If you happen to entertain customers, you may be able to deduct 50 percent of those expenses. For example, if you take a client out to dinner or a sporting event, you can write off half of what it costs.

Discover your passion for travel with the flexibility of a home-based travel agency business. Check out our video for the benefits of being a home-based travel agent.


IRS, Travel Market Report, Money Talks News

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