100% or 50% meals

[JG EA]

2 Shareholders (Husband is employee of S-Corp and wife shareholder not an employee) have quarterly meetings at a restauant. 100%? If not should we label it as a quarterly party?

[ChEAr$]

There is no need

2 Shareholders (Husband is employee of S-Corp and wife shareholder not an employee) have quarterly meetings at a restauant. 100%? If not should we label it as a quarterly party?

nor any reasonable business purpose for shareholders' meeting outside of the required annual meeting. So for at least 3 of these, no deduction.

For the annual shareholders' meeting, it would certainly be 50%. However I can't see any business purpose served even by this one meeting. After all, corporations in which I hold
stock don't buy me dinner annually.

Naw; sounds too much like a personal expenses being disguised as business deduction.

[veritas]

Do they

only eat together once a quarter?

[S T]

Gotta Luv

These clients of ours that incorporate (S Corp). They have received all of the advice from the barber, their hairdresser, their auto mechanic, their friends, searching the internet for the wrong information, self help guides, etc.

You are incorporated, you can write everything off!!!

At the most I would only do an annual Shareholder meeting and then that is subject to 50% disallowance.

My 2 cents worth. But then I am conservative!!

Sandy

[erchess]

Business Purpose of the Meal

Eating is normally a personal expense. There are certain clear exceptions such as when one is away from home overnight on business or is entertaining clients. I can't think of a business purpose for feeding a corporate board of directors in a restaurant whether we are talking about Ma and Pa Scorp or Microsoft or TMI. I also don't think that Ma and Pa Scorp need to meet more than once a year. But they would have some selling to do to persuade me that there was a business purpose for eating at the meeting. Also to be 100% deductible I would think that the meal would need to be on the premises of the company and I doubt that anything except their home office counts.

If they want to eat restaurant meals and write them off then they need either to find conventions or other reasons to go out of town on business overnight or they need to entertain prospective or current clients.