Does Your 1099 Add Up? Income and Expenses for Hosted Travel Agents!

IMG_0839-700On the beach at North Carolina’s Fort Macon State Park

If you’re an independent contractor/hosted agent, sometime in late January you’ll normally get a little surprise in your mailbox:

A 1099 from your host agency.

Don’t let that surprise you as your host should be sending you one every year…but, if it’s your first year in business that 1099 may raise an eyebrow…it did with me.

What is a 1099? We’ve all gotten them before, they should look familiar, but what are they, exactly?

1099 is the title given to a series of documents created by the U.S. Internal Revenue Service (IRS). 1099s are information returns (returns filed with the IRS and others that are for information only) used to report certain types of payments or income to the individuals or organizations receiving those payments.

You’ll receive a 1099 from your host because your received money – hopefully gobs and gobs of it – from your host throughout the year. [Read more...]

Let’s Go See the Swimming Pigs! Travel Agents, Tax Deductions, and Self-Funded FAM Trips

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Sandals Emerald Bay, not far from the swimming pigs!

How many of y’all have been to see the famous swimming pigs of Big Major Cay in the Bahamas’ Exuma chain?

We haven’t.

It’s close to the top of Jennifer’s desperate-to-visit list.

Since we love selling relaxing getaways to Sandals resorts, a trip of our own to nearby Sandals Emerald Bay might be a good way to combine a little work with a trip on the desperate-to-visit list.

This is the sort of trip that nearly every travel pro takes and one that I like to call the self-funded FAM trip.

Your might wonder:

Is a self-funded FAM tax deductible for a travel business owner?

Let’s run through the answer, and discuss some of the finer points of tax deductions for travel agents (you really do have to incorporate a few swimming pigs to make a discussion of tax deductions more tolerable). [Read more...]

Yes, But…Thoughts on Deducting Cruises for Business

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Hanging out with Pluto on Castaway Cay!

You’re a travel professional (consultant, agent, writer, blogger, location independent entrepreneur) and you’re interested in a new area, destination, or type of travel. You plan a trip of your own to explore this new destination.

You self-fund this trip.

You’re not going along on a fam or a press trip organized and funded by someone else, but you’re paying for this through your own money or your business’ money.

Is this tax deductible?

Let’s say you’re a travel agent/consultant who is beginning to assist clients with Disney Cruise Line sailings. But, you’ve never been on a Disney Cruise, and you need some first hand experience. You book a trip for you and your family on one of Disney’s 3-day sailings from Port Canaveral to the Bahamas with a stop at Castaway Cay. [Read more...]

What Do Tax Deductions and Cruise Ships Have in Common?

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The Disney Dream at Castaway Cay

What do tax deductions and cruise ships have in common?

…a high degree of complication.

Cruise ships are like floating cities with thousands of people, tons and tons of food, thousands of gallons of drink, and exceedingly complicated machinery.

Tax deductions are just complicated.

Cruise-related tax deductions are more complicated than many others. Read on for the scoop…

Filing your taxes is likely the most familiar accounting task you’ll face, and it comes with a tremendous amount of stress for many travel pros.

April 15th is just days away. [Read more...]