Christmas Meal redux(again)

[veritas]

I hope I get this right

[veritas]

I think I got it. Thanks for the help!

[veritas]

Most got it right.

I was questioned on audit about this deduction. After the auditor did some checking she agreed it was 100% deductible.

We also deduct annual company picnic 100%.

[Joe Btfsplk]

Deducting meals

I am self-employed and work at home, so I should be able to deduct 100% of the meals since they are provided for the convenience of my employer.

I once had a client who had some accountant who told him to deduct all of his housing and food on that basis. The IRS never audited him.

[OldJack]

I am self-employed and work at home, so I should be able to deduct 100% of the meals since they are provided for the convenience of my employer.

The same concept allows one to deduct 100% of their mortgage payment, 100% of their auto payment, and 100% of my girl friends apartment payment (among other things, she is also for my convenience). I have never been audited.

[veritas]

If your girl friend worked in a certain county in Nevada it could be deductible.

[S T]

Oh Dear

Oh dear am I missing deductions for my client!

S

[jainen]

a big nuisance

>>I am self-employed... the convenience of my employer<<

I am self-employed too, but I don't find it convenient at all. Having a job is a big nuisance!

[OldJack]

I am self-employed too, but I don't find it convenient at all. Having a job is a big nuisance!

Yeah... I know what you mean... I am too busy to work.

[Jim R]

I am self-employed and work at home, so I should be able to deduct 100% of the meals since they are provided for the convenience of my employer.

I once had a client who had some accountant who told him to deduct all of his housing and food on that basis. The IRS never audited him.

Self-employed do not have an employer. However I have heard of farmers who incorporate their farm and live their at "the convenience of thier employer" with their food and housing tax deductable. I do not do farm taxes, but I got the impression at one time this was common and accepted, and for all I know may still be.

[jainen]

Great plan

Great plan, until you want a Section 121 exclusion.

[natiro]

Deduction

Not to get serious all the sudden in this amusing thread, but just wanted to point out that the 100% deduction for the Xmas party is allowed under IRC 274(e)(4) and 274(n)(2)(A) and has nothing to do with the concept of "convenience of the employer."

It's the latter code section which allows 100% deduction as it relates to the former code section which specifically discusses "expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees (other than employees who are highly compensated employees."

Also, Reg 1.274-2(f)(2)(v) says:
"Ordinarily, this exception applies to usual employee benefit programs such as expenses of a taxpayer (a) in holding Christmas parties, annual picnics, or summer outings, for his employees generally, or (b) of maintaining a swimming pool, baseball diamond, bowling alley, or golf course available to his employees generally"

This last part opens up all sorts of interesting possibilities that I had never considered before!

That said, I agree completely that being self employed isn't very convenient at all and sometime when I have nothing better to do, I'll see if I can find that in the code, too!

[Unregistered]

Self-employed do not have an employer. However I have heard of farmers who incorporate their farm and live their at "the convenience of thier employer" with their food and housing tax deductable. I do not do farm taxes, but I got the impression at one time this was common and accepted, and for all I know may still be.

I'm thinking that's like the per diems for firemen and cops. There was a case were one of several owners of a closely held family farm corp was allowed to claim convinience of the employer. There are many cases that go the other way if it's single shareholder or H & W.

[jainen]

Pollmaster

Pollmaster, I haven't voted yet because I can't figure out what's the difference between choice #1 and choice #4. I mean, the first and fourth choices (they aren't numbered).

Generally I find the office Christmas meal is not digestible at all, but that's not one of the choices.

[veritas]

Well you are correct it is a pretty poor excuse for a poll. I think I may leave the polls to the experts.