Business trip + vacation = savings
By Dana Dratch • Bankrate.com

No, Uncle Sam won't pay for your family vacation to Maui. Neither will your expense account. But there are legal and ethical ways to combine business and pleasure travel and save a little money in the process.

Looking for a good deal for you and your company? Have your significant other meet you for a weekend break following business meetings.

Airline tickets often are much cheaper when travelers spend a weekend at their destination, says Edward Hasbrouck, author of "The Practical Nomad: How to Travel Around the World." Plus, business-oriented hotels in big cities often empty out on the weekends. To fill the rooms, they offer great deals.

"Everybody wins," says Hasbrouck. The company accountant is happy because the air fare savings more than offset your two extra days of hotel and meal charges. And you get to spend two fun-filled days for the price of your companion's airline ticket, meals and the difference in single- and double-room occupancy.

But with airlines reducing their capacity, Hasbrouck cautions that the cheap seats could be tougher to find this summer. Make your reservations as soon as you know your business-travel plans.

Look for credit card, hotel perks
That lone personal ticket can cost less if you use the proper credit card. You might even be able to fly for free if the card you use for personal and business charges lets you rack up frequent-flier miles, notes Diane Kennedy, CPA and author of Loopholes of the Rich.

The secret: Pick the card that offers the best deal to frequent fliers, then use it consistently to get the most mileage for your dollar. Bankrate tracks various credit cards, including those that offer air miles, so you can find one that fits your charging and travel style.

Just remember to pay off the balance every month. A deal is no deal if you're running up high-interest debt.

Savings don't have to stop when you land. Upon arrival at your hotel, Kennedy says to ask, "What can you do for me?" Hotels often run special deals that they don't automatically tell guests about. Inquiring about specials could get you a better rate.

If you're 50 or over or travel with someone who is, look for possible discounts given to older vacationers. In addition, many hotels offer special rates to AARP and AAA members.

It's your business
Official excursions by small-business owners could be eligible for a number of tax deductions.

When you travel domestically to conduct business for your own firm, your air fare and hotel costs are deductible. So are the costs of living on the road, such as meals, tips, dry cleaning, cabs or rental cars. If your spouse is also an employee or business partner -- and is needed on the trip -- those expenses are also deductible, says David J. Silverman, an enrolled agent and co-author of "Taxes for Dummies, 2002 Edition."

On an international trip, tax deductions are a little more complicated. If your trip is less than one week, you can deduct the entire cost of air fare, along with travel to and from the airport, says Silverman. If your trip is more than a week and at least 75 percent business, you also get the full deduction. Otherwise, you have to treat air fare as you do all your other expenses and prorate your deduction based on the percentage of time you spend conducting business.

For instance, if your overseas trip is 60 percent business, you can deduct 60 percent of your expenses. Silverman advises using a similar prorated system for everything but air fare even on domestic jaunts, because "no trip is 100 percent business."

You don't necessarily have to be the sole owner of a business to qualify for travel deductions.

Shareholders in both S and C corporations are entitled to attend shareholder meetings and take a deduction on their taxes, according to Michael Tiret, CPA and partner in the San Bruno, California-based accounting firm of Tiret & Company.