I have a machine shop business in Ca. and moved my residence to Id. I also purchased new equipment and placed them in my shop on my place of residence in Id. So I am now manufacturing products for California in both locations. Can I deduct any of my travel expenses when I go to California for business? ========>I guess you as a full year resident of ID now, then if you spend time travelling as part of your business you can claim business travel as an expense. A good way to prove the business portion of your travel expenses is by keeping a diary of your travels. Business travel is a specific term determined by the IRS to describe travel away from your tax home that is "substantially longer than an ordinary day's work" and that requires you to sleep or rest while away from home.You must also sleep away from home to be able to deduct these costs.The travel must also be "temporary" lasting less than 1 year.your tax home is the city or general vicinity where your primary place of business or work is located, regardless of the location of your residence, and has an effect on your tax deductions for business travel
As long as you are actually conducting business in a city other than the one you live in, your business expenses generally qualify as tax-deductible.foir example, whether you fly, take a train or bus, or rent a car for your business purposes, you can deduct the expenses. Taxi rides count too, so make sure to get a receipt. You can also write off your accommodations. Be sure to ask for an itemized bill when you check out, because some hotel expenses might be ineligible, like your trip to the mini bar or movie rental. or so, if you feel an expense is not necessary for you to conduct business, don?t claim it. Being audited is no fun, and it?s not worth getting caught to try to reduce your taxable income with questionable expenses.
I also have a office on my residence in Idaho to perform administrative and management duties. If not how may i set this up for the best tax benefit?===========>I guess hard to tell simply;there are both advantages/disadvantages in setting up your biz in a certain form,i.e, S-crop or C orp or SMLLC or etc.you need to contact an IRS Enrolled Agent or a CPA doing taxes in your local area for more professional help.