HOW TO DEDUCT YOUR FUN

Call Beucler Company CPA to help you with maximizing your income tax deductions.

Income tax laws can be difficult to understand and are always changing.  Make sure you are maximizing your deductions and that your records are audit proof.

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Strategy 1:  Discuss business when you eat.

• The tax law requires that you have a bona-fide business discussion.  A business meal must be arranged for the purpose of conducting clear and specific business.
  

• The tax law requires that you must discuss business before, during or after a business meal to qualify for the business meal deduction.
  

• Your primary purpose for the entertainment must be business.
  

• The meal must take place in surroundings conducive to business.
  

• You must adequately substantiate meals or entertainment.  Here are the exact five questions that you will need to audit-proof your entertainment forever.
  

1.Who was entertained (business relationship)?

2.Where did the entertainment take place?

3.When did the entertainment take place?

4.Why did the entertainment take place?

5.How much did the entertainment cost?

Strategy 2:  Deduct theater tickets, golf fees, movies, sports tickets, and other “associated entertainment” expenses

• “Associated entertainment” takes place in a non-business setting.  No business discussion occurs during the entertainment. 
  

• The key IRS requirement for you to deduct your fun is that the entertainment must either precede or follow a substantial and bona-fide business discussion during the same day as the entertainment.
  

Strategy 3:  Deduct for feeding and entertaining your spouse.

• The closely connected spouse rule allows you to bring your spouse and deduct his or her costs whenever you are entertaining another couple.   In other words, if your business guest brings a spouse or a guest, you are entitled to bring yours.
  

The taxpayer should seek advice

Based on the taxpayer’s particular circumstances

From an independent tax advisor

Beucler Company CPA, Inc.

2503 Summit St.

Columbus, OH  43202

(614) 784-1099

Internal Revenue Service Circular 230 Disclosure:  As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.