Facts You May Not Know About Rea & Associates, Inc
November 26, 2018
Rea & Associates, Inc. As you document and record the expenses a common point happens when trying to determine entertainment and meal expenses that are 100 percent allowable, 50 percent allowance and nondeductible. To help facilitate recordkeeping for your employees or you, consider establishing these 3 expense categories inside your institution’s expense report. Documenting Expenses – Deducting expenses does not need to be a process that is complicated. Documentation is key for proving the costs to having a solid foundation. You should be able to establish: Lorman has over 31 years of training experience. Join us for a report and level your Payroll knowledge up! – Jeopardizing Exempt Status – Inspired by Patrick M.
Madden – Learn More – The quantity of the cost – The time, date and location of the cost – The intention of the company debate – The identification of the men and women who participated – 50 Percentage Deductions – Normally just 50 percent of allowable meals and entertainment expense is allowable. Some costs which may be subject to the 50 percent limitation are: Ticket cost for sporting event connected with a company Discussion – Lunch with client, employee or client related to a company discussion – Taxes and tips about a meal or entertainment action – Room rental for a cocktail or dinner party – 100 Percent Deductions – A few business meal and entertainment costs are 100 percent deductible.
These include: Transportation costs to from a company meal or entertainment activity, can be 100 percent allowable or 50 percent depending upon the facts. Meals provided on those employer’s premises for those company’s convenience, if greater than 50 percent of the workers are provided meals for the employer’s convenience – Promotional activities that are made available to the general public – Employer provided social/recreational expenses mainly for the benefit of workers who are not highly compensated, such as a summer picnic or holiday party – Corporate gifts up To $25 to any one person per tax year – Tickets to charitable fundraising sports events – Nondeductible Items – Unfortunately, some company meals and entertainment costs are nondeductible and have to be categorized as such.
Examples include: Lunch with customer, client or employee without a business purpose/discussion – Ticket price for sporting event that you do not attend – Club dues, for example, country clubs, golf and athletic clubs – abundant or extravagant entertainment expenses – Linda S. Zevnik, CPA – The material appearing in this website is for informational purposes only and isn’t legal advice. Transmission of this info isn’t intended to create, and receipt doesn’t constitute, a lawyer client relationship. The info provided herein is intended only as general info which might or might not reflect the most current developments.