Meals on Steals

Taxes Taxes....I've decided to love them as much as they want to love me.

Being in a home based business, people get lied to... A LOT! There's that thing we used to think about "if you don't make any money you can't write nothin' off."

And I'm a blonde white woman with one blue and one green eye wearing a tatoo of Rush Limbaugh on my butt. . . if that's the case.

The truth is that as long as you are IN PURSUIT of a profit, and can document it, you can lose as much money as Amazon.com did in their first 12 years of making zippo profits! (And zippo does not mean cigarette lighters.)

If we don't know what we hand over to our tax professionals, then we all certainly should! Or else it could mean a family loses thousands handing over stuff to people who only work with W2's.

QUIZ YOUR TAX PROFESSIONAL!

Two types of rules:
1. Discussing business during a meal/activity.
2. Associated Entertainment Rule.

GIFTS: 100% deductible
Limit is $25 per TANGIBLE gift, per person, per year. A couple with a business partnership receiving a TANGIBLE gift, the $25 is per couple, not per person!

Gifts of Entertainment are deductible at 50%--No $25 limit with these.
Example: Season tickets to the Indianapolis Colts or Lincoln Center.

Meals: Dutch Treat Rule: The IRS allows you to deduct the meal of the person you pay for. If you do NOT pay for the person's meal, then here's the scenario: If you figure your average lunch out is about $6, and you take out a client to discuss business and both of you pay for your own meals (say at Applebees, and your personal tab is $14, then the IRS allows you to deduct the difference, which is $8 to deduct.) See how many times you eat out, and without a home based business, how much money you throw away every single year for the past 10 years eating out.

If you don't eat out, and you buy about $150 worth of food for your home, and you throw a big travel party, your food is 100% deductible. (This might even apply to appliances like large screen tvs but CHECK WITH YOUR IRS PROFESSIONAL WHO IS A TRUE PROFESSIONAL IN HOME BASED BUSINESS!!)

If your meal is under $75 you do not need a receipt. DOCUMENT IT WITH THE FIVE ELEMENTS: Who, What, Why, Where, and HOW MUCH!

If you write the name of the person and the fact that you asked for a business referral or told them about the Trip of a LifeTime contest, or that next time they need travel, flowers, golf, hunting, romantic getaway, wedding apparel, blue crab, a concert ticket, a cruise--that they check out your site, then DOCUMENT IT!

When traveling, YTB Affiliates can take a standard meal allowance of $35 a day. No need to treat others while away on business. The IRS recogizes your meals and travel as tax deductible.

For a YTB couple filing jointly on their tax returns, if they operate the business in separate spheres of influence from time to time, then the couple who files jointly CAN FILE SEPARATE SCHEDULE C's and split the business expenses as TWO filings.

Types of Expenses for Meals and Entertainment for YTB business owners:

Travel: 100%

Meal Examples: Lunch with customer within 24 hours before, during or after the meal:
50%

If no business is discussed: Zero percent.
What is the definition of business discussed, "Ask for a referral and hand them a card."

Cab fare to the restaurant: 100% deductible
Rental car: 100% deductible
Hotel: 100% deductible
Tickets to a ball game: 50% deductible
Taxi to the game: 100 % deductible
Parking and tolls: 100% deductible

Tickets to a charity golf tournament run by volunteers: 100%
Green fees, carts, food and entertainment while discussing business: 50%

Y'all go on and check out www.TaxUniversity.Webs.Com and look at the schedule.
Might save you a boatload of loot, so you can go on a tax deductible trip...if one knows how (smile.)

That's it for me for a minute.
cynth'ya