Meals and Entertainment

Meals and Entertainment

  1. Party with your Employees for 100% deduction (bring staff together and create social interaction)
  2. Business Meals for 50% (you or your employee must be present) Thus, taxpayers generally may continue to deduct 50 percent of the food and beverage expenses associated with operating their trade or business, including meals consumed by employees on work travel. See H.R. Rep. No. 115-466, at 407 (2017) (Conf. Rep.).

To claims this deduction: Fees for us to prepare: $500/year

  1. We will create the documentation of this event which requires that it is primarily for the benefit of your employees (other than those who own 10 percent or more of the business or in the highly compensated group).—100 percent deduction
  2. We will prepare the document that “Have your corporation reimburse your home office expenses to you as an employee business expense.”
  3. Complete IRS Form 8829 showing your home-office expenses for the year. Planning tip. Do not file this form with your tax return. Instead, attach the form to an expense report that you give to your corporation as the basis for corporate reimbursement to you for the home-office expenses.

What you need to maintain:

  1. If you own an entertainment facility (lake cabin), the employees must use it more days that you do. We need dates that the facility was used by the employee and dates used by the highly compensated group and the reason for the employee events. —100 percent deduction

Your corporation gets the deduction for its reimbursement of your employee expenses. But with this deduction comes the need for proof. Make sure you submit proof to your corporation that backs up the deduction—for example:

  1. Receipts for expenses or written note with name of restaurant, people who attended, food/drink consumed
  2. Photos that show the office set up for exclusive business use
  3. A logbook, for at least 3 months, that shows use of the office for more than 10 hours a week.