More deductions = less tax. It’s that simple.
If you have a business meal where the expense is clearly reasonable and ordinary for the production of income in your business, you’ve got a 50% deduction. In other words, take your accountant to lunch to discuss your accounting or tax situation and you can take a deduction for 50% of the bill.
Most business owners are happy to get any deduction for meals. But are you ready to get even more?
Here’s how to turn a 50% deduction into a 100% deduction:
Meals that are eaten on business premises for the benefit of the employer, are 100% deductible.
So, if you have a small business and bring in coffee and bagels for the mandatory morning meeting, you have a 100% deduction for the coffee and bagel expense. Likewise, if everybody needs to work at their desk and you order in pizza, you’ve got a 100% deduction.
Now let’s turn that even healthier. How about having a personal chef bring in meals when you have to keep working at your computer or in meetings at the office? 100% Deductible How about hitting your favorite coffee house for a latte to go so you can get a jump on the email? 100% deductible.
Of course, like all business deductions, you must have a business first. And you need to be able to prove that the expense is for the benefit of the employer.