Is it a Dental Planning Retreat or a Vacation? What is the Difference?

I have another general dentist friend and we want to vacation together, but not necessarily hit a dental course together. We practice in the same space, but have separate corporations. Is there any way to take a vacation together and run it through our respective businesses?

If you’re asking if a personal vacation can be deducted as a business expense…absolutely NOT!

It sounds like you’re asking if a business can have a retreat away from their main location to discuss future planning strategies for growth, new equipment, new procedures, staffing, etc. If that’s what you’re asking…absolutely.

Big businesses send their top executives away all the time for those business-type retreats. They sometimes even include team building activities like golfing, etc.

Thanks for the great reply. Is there a minimum number for a retreat? I assume it is 2 or maybe 3 dentists or staff.

Thanks!

Nothing in the tax code I’ve ever read about minimums…it has to be “ordinary & necessary” and of course “reasonable” (that’s my term, not the codes)….

Documentation is the key: who, why, purpose, agenda, goals, notes or minutes of meeting, etc…

This first appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at tlott@dentalcpas.com

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