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Buesiness Meals // Business Builder Group

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    Buesiness Meals // Business Builder Group

    BACKGROUND I belong to a business builder group. Twice a month those of us in the group read several pages of advice on some aspect of business prepare written answers to questions and meet for an hour and a half to discuss the reading and other issues related to our business under the guidance of one and sometimes more than one of the principals in the firm we are all paying for this and in some cases other services. Lately we have started meeting in a fairly pricey coffee shop and generally everyone buys coffee and perhaps something to eat.

    1. I believe those of us who are paying for consulting on how to write business plans, get financing, and other things necessary to plan the growth of a business can deduct the expenses. Anyone disagree with that? Seems ordinary and necessary to me.

    2. None of us is away from the general area of his or her tax home overnight and no one is picking up anyone else's tab so I believe that our food expenses are personal. Am I right? Even the convener who is dealing with customers and talking business with them would also need to be paying for one of us, right?

    3..There would seem to be no way to change the financing of the food that benefits us all, or am I wrong? If the company increased our fees and provided the food and drink it would increase our tax deductions but if the fees increased by only the amount of food we would be ahead and the company would be behind while if the fees increase enough to make the company at least break even, we as a group would be losing money.

    #2
    I think you are right.

    Maybe these quotes will apply.

    TTB 8-2
    ...
    General rule—business deduction is limited to 50%.
    ...
    Provided to individuals with no reasonable expectation of
    getting any business from it .................................................. ..... 0%
    ...
    Taxpayer’s own meals, not away from tax home .......................... 0%
    ...
    .
    JG

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