Tax Secrets of the Wealthy: If you are always on the move, check to see what is deductable

They love it even more when it's deductible.

But just what expenses are deductible?

The wrong answer can get you into deep (and very expensive) trouble with the IRS. The right answer gives you smooth tax sailing (and extra dollars in your pocket).

Here's a rundown of the basic rules so you can pump up your travel deductions.

Travel for business: All of your travel expenses on business trips are fully deductible.

Deductible includes all of your costs of getting to and from your destination and back (like plane, train and car rental).

Also 100 percent deductible are normal expenses of living on the road (like hotel rooms, tips and even getting your clothes cleaned).

But remember, expenses for meals and entertainment (including tips) incurred while you're traveling are only 50 percent deductible.

Yes, it's OK if you mix business with pleasure, but you must show that the trip was made primarily for business reasons. This mix is an all-or- nothing issue.

There's no travel deduction if business isn't the primary purpose of your trip.

Want to bring your spouse along? Fine, but you can only deduct the cost of traveling alone if your spouse's presence has a real business purpose.

Answering the phone, typing, etc., won't do. Examples of what works: If the business is jointly owned by you and your spouse, or if the trip is to a country where your spouse speaks the language and you don't. In addition, your spouse must be an employee of your company.

Luxury water travel: Special rules apply to business travel by ship. You can take twice the highest daily allowance for U.S. travel by federal government employees.

Since this per diem amount changes from time to time, have your accountant check the amount when you are ready to take a trip.

If the per diem amount is, say, $175, you can deduct up to $350 per day of your cruise expenses.

A pleasant note: The 50 percent rule for meals and entertainment doesn't apply if these expenses are not item ized on your tab for the cruise.

Travel for education: The cost of a business education seminar (for employees) is deductible, and so is the cost of there and back.

Also, costs of seminars relating to your business (for employee owners) are deductible.

Sorry, you get no deduction for investment seminars.

Travel for charity: Happily, you may still claim a charitable deduction for the cost of traveling on behalf of an orga nization.

But the deduction is barred if the trip involves a significant element of personal pleasure, recreation or vacation.

Tax break: If a trip qualifies, all related costs are deductible, including 100 percent of your meals.

Travel for medical reasons: You can deduct the cost of travel for medical reasons, but only to the extent all your medical expense deductions exceed 7.5 percent of your adjusted gross income.

Lodging expenses are limited to $50 per night per person, but you must show that the overnight stay is essential to receiving your medical treatment.

Irv Blackman is a certified public accountant and lawyer who specializes in estate planning, business succession and asset protection. Contact him via e-mail at wealthy@bkbcpa.com or call 417-9732. His Web site is www.taxsecretsofthewealthy.com.