How Real Estate Investors Can Deduct Weekends on Business Trips
Real estate investors who travel for business often wonder if they can deduct expenses for weekends during a trip. The good news is that if your business activities require you to stay over the weekend, those days can be tax-deductible! Here’s how you can maximize your travel deductions while staying IRS-compliant.
The IRS Rule on Business Travel
Under IRC Section 162(a), business expenses are deductible if they are “ordinary and necessary” for your trade or business. This includes travel expenses if the primary purpose of the trip is business-related.
How to Make Weekends Deductible
The IRS allows deductions for weekends if staying is more practical than returning home and coming back for business. To qualify:
Business Must Happen Before and After the Weekend
You must have legitimate business activities scheduled on both Friday and the following Monday. This makes the weekend days necessary to stay at your destination.
Travel Must Be Primarily for Business
More than 50% of your trip should be dedicated to business. Personal activities are allowed but cannot be the main purpose.
Keep Proper Documentation
Save receipts, schedules, emails, or itineraries proving that business was conducted before and after the weekend.
Example: Making a Weekend Trip Deductible
Sarah, a real estate investor, travels from New York to Miami for property tours. She follows this schedule:
Monday: Flies to Miami (Deductible)
Tuesday-Thursday: Tours properties, meets with agents (Deductible)
Friday: Inspects her existing rental and meets with a contractor (Deductible)
Saturday & Sunday: Relaxes on the beach (Normally not deductible, but she has business on Monday!)
Monday: Meets with a real estate attorney and tours another property (Deductible)
Tuesday: Flies home (Deductible)
Since Sarah had business activities on both Friday and Monday, the weekend days are considered necessary layover days and deductible.
What Can You Deduct?
✅ Flights (fully deductible) ✅ Hotel stay, including the weekend ✅ Rental car for the entire trip ✅ 50% of meals for business days, including the weekend
What Is Not Deductible?
❌ Personal activities like entertainment, sightseeing, or spa treatments ❌ Additional expenses unrelated to business
Key Takeaways
If business occurs before and after a weekend, those days become deductible (IRC §162).
Your trip must be primarily for business purposes.
Keep records of meetings, properties visited, and business expenses.
By using this strategy, real estate investors can enjoy a weekend getaway while legally deducting travel expenses. Consult with a tax professional (like us) to ensure compliance with IRS rules and maximize your deductions!