Posted by Bud Branstetter on March 18, 2001 at 22:06:17:
You can download Pub 334 at http://www.irs.ustreas.gov/forms_pubs/pubs.html
When you read it it talks about travel expenses when you need to rest inorder to perform your duties. It is not always cut and dried what is or is not allowable. Discuss what you read with your CPA and they can advise you why they did it that way.
tax question… - Posted by carl
Posted by carl on March 18, 2001 at 08:38:27:
Besides my real estate investing, I have a small business. Last year I had a CPA do my taxes and he said I could deduct 1/2 of our meals out as long as we talked about our business (my wife and I).
This year I have a different CPA (we moved). He says we cannot deduct meals unless we took a client with us! I have $1000.00 in restaurant receipts and no where to use them!
Who is correct on this? Where else can I ask this question?
Re: tax question… - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 18, 2001 at 10:18:42:
Hey Carl,
Have you considered reading the rules for yourself? Might thak you about 10 minutes, and then you would know for sure.
May I suggest publication #334, by the IRS. It is free.
The purpose of being able to deduct business meals is to generate business, and is usually confined to the folks that you might possibly be doing some business with in the future.
The auditor will ask you what business deal that you were working on getting your wife to do with you on any given day that you bought her (and your) lunch. The auditor will want to see your notes and appointment book for every day that you claim the “free (half) lunch” deduction.
I suggest that since lunch type entertainment is a super RED FLAG with the IRS, that you now “eat” the recipts, as you did the lunches.
The advice that you got from the first CPA, may have been possibly correct, but in my opinion is very marginal. Now lets see…Would a CPA get paid more if (when) you get audited ?
Re: tax question… - Posted by carl
Posted by carl on March 18, 2001 at 17:14:57:
He would be fired from all future biz if I had to pay more due to his mistake.