4 results for tag: Business Meals
Discover the Hidden Potential of Business Meals: Maximizing Your Tax Benefits
If you go to a Dutch-treat lunch with a colleague or have a member lunch at your monthly chamber of commerce meeting, you face two opposing tax laws:
The law that denies your deductions for personal living expenses (food)
The law that allows business meals as tax deductions
Tax professionals know this conflict as the “Sutter rule,” named after Dr. Sutter, who had a bad experience with the Tax Court. When the IRS and/or the courts invoke the Sutter rule, you lose your business meal deductions to the extent they don’t exceed your personal meal costs.
Example: Your Dutch-treat meal deductions for business entertainment for the year are ...
Don’t Expose Yourself with Improper Use of the $75 Rule
When the $75 rule applies, you don’t need a receipt.
The problem with this rule is that it is often thought to apply to all tax deductions. That’s wrong.
Now, think of the taxpayers who incorrectly apply the $75 rule to all of their tax deductions. They are exposed to a massive loss of deductions and likely some penalties too.
The $75 Rule
IRS Reg. Section 1.274-5(c)(2)(iii) contains the $75 rule.1 Notice 95-50 contains a clear explanation of what the $75 rule applies to.2 Here’s how it works:
You don’t need a receipt for business travel expenses that are less than $75, with two exceptions: (1) you always need a receipt for ...
14 Tax Reduction Strategies for the Self-Employed
It's a brand new 2022, 2021 has ended, and either you already have your 2021 taxes squared away or you're filing an extension so that you can figure out how to optimize your tax avoidance strategies for the new business you started during the COVID-19 Pandemic in 2021.
Let's get your mindset and strategic thinking for 2022 heading in the correct direction with the following 14 Tax Reduction Strategies for the Self-Employed.
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo
In this article, you will find some related articles that I've previously written with the nuts ...
Deduct 100 Percent of Your Business Meals under New Rules
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo
As a subscriber (member), you know that we try to find multiple ways for you to legally deduct 100 percent of your business meal expenses versus the typical 50 percent.
Now, thanks to a new law enacted December 27, 2020, new IRS regulations, and a new IRS notice (yep, all three are new), you have fresh opportunities for writing off 100 percent of your business meals.
For 2021 and 2022, you can deduct 100 percent of your business meals by paying attention to a few new, easy rules.
We’ll explain how this new, ...