The art of business limo riding is a fine one. It may be in the same luxury vehicle, but a business limo reservation is a far cry from a night out on the town, wedding day limo service or a special birthday splurge.
How you use a limo for business can be a client game-changer, affect your taxes and reflect positively or negatively on your company’s image.
The Business Limo Dos
Do keep receipts and records – You can deduct business-related limo expenses from your taxes. Depending on how much you spend the tax savings could really add up. To avoid any potential hang ups, keep records off all business transportation expenses.
Do read over the business transportation IRS regulations – If you do plan to write off business transportation expenses you’ll want to first review the rules laid out by the IRS. Publication 334 and 463 covers travel and transportation expenses that can be deducted. Other helpful forms include:
Form 2106 or Form 2106-EZ – used to figure deductions
Form 1040, Schedule A – for employees, Form 2106 or Form 2106-EZ deductions carry over to this form
Form 1040, Schedule C – for self-employed, Form 2106 or Form 2106-EZ deductions carry over to this form
Do transport clients and business partners (even potential ones) – Going the extra mile for a client, whether they are traveling to see you or you’re traveling to see them, speaks volumes about how much you value their business. Everybody likes a little special treatment every now and then, and being chauffeured around town definitely falls under the indulgence category.
Do opt for transportation from the airport – After a long day of air travel the last thing you want to have to do is wait around on a taxi. This is especially true if you are on a tight schedule and have to meet clients soon after landing. A limo service will guarantee that your ride is there as soon as you need it, and you’ll be able to sit back and unwind comfortably before getting down to business.
The Business Limo Don’ts
Don’t go for a joy ride – If you aren’t paying personally for the transportation or you want to deduct the limo service, it needs to be used strictly for business only. However, that doesn’t mean you can’t reserve a ride to a business dinner or meeting a client for a business conversation outside of the office.
Don’t go overboard – If a sedan black car service will do, it may be best to opt for that over a limo. Your company will appreciate that you’re being conservative and you’ll avoid possible questioning by the IRS, which won’t allow for travel deductions on things they consider lavish or extravagant.
Don’t create a bad name for your business by having poor limo etiquette – If you mistreat the limo or the chauffeur there’s a good chance your company will hear about it, and it will most certainly taint your reputation with the limo company. Remember, Austin limo companies work with a lot of businesses, and having a solid relationship with them can have a huge impact on your own.
Original Source: https://www.royalaustin.com/limo-101/business-trip-limo-dos-and-donts