Dynamic Business Solutions Inc

A specific business benefit is expected to result from the discussions immediately before, during, or immediately after the meal or event, such as a meal with a business person to discuss the employer’s products/services.

The meal or entertainment is in active pursuit of business. You don't have to prove that a sale or other business benefit resulted from the meal or entertainment, or even that more time was devoted to business than to entertainment. But you must be able to prove that business was the primary purpose of the event, not incidental to it.

The setting is conducive to business. The IRS often (but not always) deems as pure entertainment and not business events, business meals and entertainment events conducted at night clubs, country clubs, golf courses or resorts.

Safety net: Hold a business meeting immediately before or after these outings and make sure you can prove that a business meeting was the primary purpose of the event and that the location was conducive to the business purpose

The cost of the meal or entertainment is “reasonable.” The IRS deems “lavish and extravagant” a meal or entertainment event to be nondeductible. Because the line between “reasonable” and “lavish and extravagant” is unclear, be prepared to justify the expense in relation to the business benefit actually derived or at least anticipated.

Finally thru tax season and on to the normal routine of payroll and accounting. Here are some tips on meal and entertainment expense deductions within your business.....

If you are starting a business and dread the bookkeeping routine then give us a call to discuss how we can make that part of your business run smoothly, while you focus on growing and developing your business. Call today 720-281-2489 to get started...

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Brighton, CO Accountant / Gardner Accounting Gardner Accounting is a full service tax, accounting and business consulting firm located in Brighton, CO