Taxes: "Meals and Entertainment"

[Bixler]

 

[sotc]

Not mine, completely justifiable.

 

[Bixler]

hey, loop holes are legal!

 

[rangerdanger]

Ours is justifiable as well, to the best of my knowledge. It gets listed under Office Expense, sub category crew lunch. Its how our accountant told us to list it, so its how we do it. Been using him for over 15 years, part of a very reputable firm.

 

[pigwot]

If it can be seen as part of non-cash 'incentives' in the interest of retention (keeping the crew from going to work for Google, where all meals are free) it is all legal.
If you are meeting clients for lunch you'd probably want to stick to the 50% rule; If travelling and claiming hotel, meals, air fare and car rentals, then it is also good to have receipts for the conference or event that you are attending. "If it looks like a fish and smells like a fish it is a fish" is the way my accountant put it years ago...


...which reminds me: "Nick, you never sent me an invoice for the on-site alterations to my climbing harness from last October "

 

[Bixler]

If it can be seen as part of non-cash 'incentives' in the interest of retention (keeping the crew from going to work for Google, where all meals are free) it is all legal."

Even in la la land California?

 

[CurSedVoyce]

Yup.

 

[Bixler]

Ours is justifiable as well, to the best of my knowledge. It gets listed under Office Expense, sub category crew lunch. Its how our accountant told us to list it, so its how we do it. Been using him for over 15 years, part of a very reputable firm.

RangeeDangee It might not be a bad idea to double check stuff like that. They say no one cares about your money or lively hood like you do.

Accountants are great and all, but not all of em'!

 

[NickfromWI]

If it can be seen as part of non-cash 'incentives' in the interest of retention (keeping the crew from going to work for Google, where all meals are free) it is all legal... "

That's the point. That's why I do it. I know in my heart it is a legitimate 100% full business expense. The concern for me is how to make sure it is reflected that way in the books. I talked to another tax guy around here and he said, "this is easy- just pay your guys more and have them buy their own lunch!"

That guy didn't get it.

 

[sotc]

If it's everyday it becomes part of their compensation and thereby needs to be reflected in work comp. If it is occasional you are better paying the 50% imo. Also in Oregon I am allowed 2 "unexpected" bonuses before it becomes compensation. ..

 

[802climber]

I don't know what size trucks you are running, but if you are subject to DOT Hours of Service regulations, you can expense 80% instead of 50% for the meals/entertainment category...