Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-17-2011, 06:34 PM
Junior Member
 
Join Date: Apr 2011
Posts: 1
Tax Write Off

I own a small business where I sell medical related products and services. I recently took a vacation with my family and in-laws and also invited a few of my clients. A lot of my expenses were cash only - tips and excursions and the whole thing ended up costing me several thousand. I have receipts for some, but not all. Can I write off the expense as a business promotion? If so, how much and how? Thanks



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-18-2011, 03:33 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
“Can I write off the expense as a business promotion? If so, how much and how?”---->I guess it depends. In general, you can lawfully deduct your legitimate business promotion activities, i.e., costs of transportation, advertising or the cost of business promotion activities that contain meals and entertainment for your clients.i.e, business lunch ( as you know, you usually can deduct ONLY half of promotion cost that involve both meals and entertainment.). Although many small business owners, as a matter of course, deduct the cost of any meal or entertaiment with a business associate, the government’s rules require that the main purpose of a meal or other form of entertainment be the active conduct of business; the IRS does allow the cost of the meal or entertaimnet to be deducted if it takes place directly before or after a business discussion. The expense has to be ordinary and necessary in the trade, business, or profession. In other words, it must be commonly accepted to have this expense and it must be appropriate in the trade or business. For example, business owners routinely have lunch( entertain) with prospective clients to discuss business with the goal of attracting additional business. This is a common and necessary business expense. The meal/ entertainment costs should qualify for a deduction.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Vehicle write-off? janobonano Limited Liability Company 1 11-11-2009 06:35 AM
Employee advances write off Nagesh C-Corporation 1 10-23-2009 08:44 AM
pay/write off jrkosik Miscellaneous 0 01-28-2009 11:10 AM
Write Off New Rental Property in NYC???? fengshui_9 Sole-Proprietorship 1 10-02-2008 11:04 PM
What can I write off? myrei Sole-Proprietorship 2 03-10-2008 05:19 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning