50% Meals Test

[OldJack]

A is a 1120 corporation in Illinois that owns a tugboat that operates on the Mississippi River.
B is a LLC-1065 in Kentucky that repairs tugboat engines anywhere worldwide.
C is a self-employed (Sch-C) tugboat engine mechanic in Tennessee that travels anywhere to work.

A... contracts with B to repair the tugboat engine docked on Arkansas bank with agreement to reimburse B for all travel expenses including meals.

B... contracts with C to go do the repairs on the same terms regarding expense reimbursement.

C... works seven days at the tugboat and submits his invoice to B for $10,000 labor & travel plus hotel receipts with $1,000 for meals for total of $11,000. B pays C.

B... submits his invoice to A as $20,000 labor and travel plus $1,000 meals for a total of $21,000. A pays B.

How is the 50% limitation on $1,000 meals deduction applicable?

The 50% meal limitation applies to:
A- the boat owner.
B- the repair company.
C- the self-employed worker.
all of the above.
none of the above.

edit: How you vote is secret, but please also post your opinion here as to why you vote so all of us can learn.

[Bees Knees]

The answer is found on page 8-9 of TTB under "when the 50% limit applies.

And no, I didn't cheat this time....I only voted once.

[DTS]

50%

Whew!

Old Jack, I'm just curious. How are you able to conduct these polls?

Dennis

[OldJack]

Whew!

Old Jack, I'm just curious. How are you able to conduct these polls?

Dennis

Dennis, when you create a new thread there is a checkmark box at the bottom of the screen to select making it a poll. Don't bother using it as a poll on this forum is not valid and is a waste of time. I reported to TheTaxBook people that unregistered guests could vote more than once but evidently the powers that be believe that allowing unregistered guests to post on the forum is more important than the poll feature. I know for a fact that one unregistered guest voted 4 times on this poll. I don't plan to do any more polls.

[Gretel]

You don't cease to amaze me, Old Jack. What a great idea. I hope there is a deadline to get the correct results.

And yes, I agree with you, unregistered people should not be allowed to vote. I am pretty sure that the editors were not aware of the problem and will correct it.

[OldJack]

Hi Gabriele, at the top of the poll bar chart is the date the voting ends..5/20/06. The correct answer is in TheTaxBook, page referenced above by Bees Knees post. If I was going to do any more of these I would make sure the answer would be harder to come by for "lookup" experts.

[Brad Imsdahl]

Dennis, when you create a new thread there is a checkmark box at the bottom of the screen to select making it a poll. Don't bother using it as a poll on this forum is not valid and is a waste of time. I reported to TheTaxBook people that unregistered guests could vote more than once but evidently Mark Perry and the powers that be believe that allowing unregistered guests to post on the forum is more important than the poll feature. I know for a fact that one unregistered guest voted 4 times on this poll. I don't plan to do any more polls.

Who is Mark Perry?

[OldJack]

Who is Mark Perry?

Nice to meet you Brad! Why has TheTaxBook not bothered to reply to my comment sent the other day regarding the unregistered guests having the ability to vote multiple times? Did I not leave my email address?

[Black Bart]

I agree with

You don't cease to amaze me, Old Jack.

that, but not in the same sense at all.

I can hardly believe that you're taking such a trifling, obviously unintentional glitch (unregistered voting) so seriously. Even if it had been intentional, it's much ado about nothing and of no consequence whatever. Like the man said before, it's an Internet poll. It's not the presidential election. The latter can have a direct effect on our lives. The former--well, what's the worst that can happen? We are/are not swamped with smilies?

Don't you feel a tad sheepish about more or less subtly implying they're crooks? These people are furnishing you a free forum to air your views on all manner of subjects; to pontificate at length as you please about anything and everything that you want. Try calling your local newspaper and asking them to print several of your letters each day.

I have many faults, but ingratitude is not one of them -- GEORGE S. PATTON, JR.

[OldJack]

You are right Black Bart... it is much ado about nothing. I guess I expected too much from a forum run by a respectable tax group to not allow this kind of problems with their board.

I don't feel sheepish about pointing out that someone was cheating after they had admitted it in an attitude that appeared to be like "I fixed your little poll how do you like that". If their attitude was otherwise I would have expected they would have offered some form of apology. Maybe if we had had the smilies at the time I would not have misunderstood if the attitude was other than how I read it.

I find it strange that you think I am the bad guy when I was only trying to conduct a poll for the benefit of all the participants of the board. I even tried a second poll (this poll) after pointing out the problem to management as I thought it might have been fixed. I wasted my time creating the problem for the second poll to immediately have it shot down. It is a little unbelievable that you find no fault with others involved when their actions have been intentional.

As to being grateful for this forum.. sure its a great forum but I also participate in 4 others and I like to I think that I contribute a little something that makes it beneficial to the forum as well as the forum is beneficial to me. I expect that I will be participating less on this forum in the future if others feel the same as you. I would be interested in comments from others as to if they think I am the bad guy here.

[Brad Imsdahl]

Nice to meet you Brad! Why has TheTaxBook not bothered to reply to my comment sent the other day regarding the unregistered guests having the ability to vote multiple times? Did I not leave my email address?

I don't know. I will check into that for you.

Who is Mark Perry?

[OldJack]

Who is Mark Perry?

Sorry... I guess I got the wrong name.

[Gretel]

I would be interested in comments from others as to if they think I am the bad guy here.

Don't you dare to leave us, dear Old Jack. Me and others highly appreciate you with everything you are. We all have our faults and still can be friends, right?

I think it's nobody's business to tell anyone how to feel and how not to feel. I can understand your disappointment and frustration. Cheating is cheating no matter how little it seems.

[Bees Knees]

I don't feel sheepish about pointing out that someone was cheating after they had admitted it in an attitude that appeared to be like "I fixed your little poll how do you like that". If their attitude was otherwise I would have expected they would have offered some form of apology. Maybe if we had had the smilies at the time I would not have misunderstood if the attitude was other than how I read it.

Here is your apology.

I’m sorry if you thought I was being malicious when I asked if voting more than once was cheating. I thought it would have been obvious to everyone that I was joking. The prank was intended to be humorous.

[admin]

Unregistered users voting on polls

Unregistered users can no longer vote on polls, they will continue to be allowed to reply to and post new threads but to help ensure the integrity of any poll that is posted only registered users will be allowed to respond.

Please understand that any poll placed on this board still represents opinion and not fact.