04.07.08
Biz Expense Tax Tip
I ran across the following business expense tax tip in Diane Kennedy’s Loopholes newsletter. Even if you have already filed your taxes this year, it may be useful to keep in mind for next year.
“If you travel for business, the cost of your travel and the hotel is lodging, not entertainment. If you categorize the deduction as entertainment, you’re going to get a 50% reduction in the amount of the deduction. Code it instead as lodging and you’ll get a 100% deduction.”
“If you furnish food for a meeting, it’s a 100% deduction. If it’s a meal out for business, it’s a 50% deduction. So, a weekly management meeting catered by a local restaurant is a 100% deduction, but going out to lunch with your accountant is just 50%…”
“If you bring in coffee and bagels for Friday morning meetings, they are also 100% deductible. Code it to meetings, not meals.”
