Berkowitz Pollack Brant Advisors + CPAs’ Post

It's Tax Tip Tuesday! On today's blog, Tax Partner Carrie Christensen, CPA, MBA, helps explain the IRS rules for deducting business meal and entertainment expenses. Thank you for sharing, Carrie! Blog - https://lnkd.in/ggQYikVi #KT #TaxTipTuesday

OK don't be lavish and extravagant about it but there are substantial tax deductions available to business owners for ordinary and necessary meals. 🤓 🤓 🤠 😇 For financial advisors and tax professionals working with entrepreneurial clients (or people who are already thinking about lunch by 10 am), here's a mini guide to business meal deductions, with insights from Jerel Butler, MBA, CFP® of Zenith Wealth Partners, Rupa Pereira EA, CSLP of FWJ Planning and the University of Illinois Tax School. #tax #business #financialplanning https://lnkd.in/gFkKf8T6

Tax deductions for meals come with a 50% limit in most cases. Here's a mini guide to noshing breaks for financial advisors, tax professionals and their clients.

Tax Tips Tuesday Beware Dave down the pub 🍻 We all know someone who gets their tax tips from Dave 🙍♂️ down the pub, Mavis 👵 at Morrisons, Shmully in Shul 🕍 or Jane 🤸♀️ at the gym. Unfortunately what people don't realise is that not everyone's tax situation is the same and just because 'Dave' got himself a lovely little 3 grand 'rebate' from His Majesty's doesn't mean you will! I see it and hear it all the time - Dave down the pub claimed for XYZ on his accounts I wonder if I can do the same? The person who gives you stellar tax advice is more often than not NOT qualified to do so. Beware Dave down the pub 😵 It's actually amazing how many times the guy down the pub is actually called Dave too! Dave knows nothing, nada, niente, nischt! 🤦♂️ Stop relying on Dave's tax tips and start listening to #taxtipstuesday every Tuesday morning If you've heard that YOU can get a 3 grand tax rebate from HMRC this year if you do some certain shtick always check with an accountant that it applies to you. You may NOT be surprised to hear it doesn't always apply ⛔ If you've learned something new today or think you've heard one of Dave's Tax Delights and want some clarity please let me know in the comments! Of course, I’ve been purposely brief. Any questions or for more advice speak to an accountant 👨🏻💼, not Dave *Apologies if you're an accountant called Dave who enjoys a pint from time to time - I'm sure you're great! #TaxTipsTuesday #DaveDownthePub #TheCyclingAccountant -------------------------------------------- 👋 My name is Ben Rose 🚴♀️ The Cycling Accountant ⚙ Helping YOUR Business keep its wheels spinning If you liked this post and want to see more Ring that 🔔 on my profile Follow hashtag hashtag #TheCyclingAccountant And of course, ➕ Connect with me

What do you need to know about deducting business meal expenses? Generally, 50% of the cost of meals can be deducted, provided they're not lavish and have a clear business purpose. Special circumstances like employee parties or promotional events may qualify for a full deduction. Keep detailed records to maximize your deductions and avoid potential audits. Safeguard your business by working with Bennett Thrasher's team of professional accountants. We take a coordinated approach to business tax planning and compliance with specialists who will increase your tax function's rate of return while searching for opportunities to lower your global effective tax rate. #Taxes #Business #TaxDeductions https://lnkd.in/e7Ndanz4

🚫 Tax Mythbuster Tuesday: Writing Off Clubbing for Promoting your Brand 🚫 In today's modern world of social media influencers and TikTok socialites, there are many individuals seeking to promote their brand and increase their following, sponsorships, and advertising deals. Some of these individuals may attend events with a large group of people, such as a club, in order to attract as much attention as possible. However, there is a misconception that one can write off clubbing expenses by claiming they were for brand promotion or treating it as a client meeting. As a seasoned tax attorney, I'm here to set the record straight. Why This Doesn't Work: 1️⃣ Strict IRS Criteria: The IRS has stringent guidelines on what constitutes a deductible business expense. For an expense to be deductible, it must be both ordinary (common in your trade or business) and necessary (helpful and appropriate for your business). Clubbing expenses rarely meet these criteria. 2️⃣ The Entertainment Expense Myth: While inviting potential clients to a club might seem like a business activity, the Tax Cuts and Jobs Act of 2017 significantly limited deductions for entertainment expenses. Even if the outing includes business discussions, the IRS is likely to scrutinize and disallow clubbing expenses as a valid deduction. 3️⃣ Documentation and Purpose: For any business expense, proper documentation and a clear business purpose are essential. Expenses for activities like clubbing are often viewed as personal in nature, and proving a direct business purpose can be extremely challenging. 4️⃣ Potential Red Flags: Attempting to write off clubbing expenses as business promotion or client meetings is likely to raise red flags with the IRS, potentially leading to audits and penalties. So, what’s the bottom line? While innovative tax strategies can be beneficial, they must be within the bounds of the law and IRS regulations. Misunderstandings or misrepresentations of what constitutes a legitimate business expense can lead to serious legal and financial repercussions. For legitimate ways to optimize your tax situation, always seek advice from a qualified tax accountant. Remember, when it comes to taxes, it's better to play it safe and smart! -------------- 📢 Be sure to follow our LinkedIn page for additional updates and information. #criminaltaxattorney #civiltaxattorney #taxes #taxlaw #ABATaxFraudConvention #LegalExpertise #LawyerForsythe #ContinuousLearning #ProfessionalGrowth #LegalAdvice #TaxMythbusterTuesday #TaxMyths #IRSRegulations #BusinessExpenses #TaxDeductions #TaxCompliance #SmartTaxPlanning

Take a look at the most relevant tax planning opportunities and considerations to keep in mind for the hospitality and consumer industries! DM your questions to any of us Lauren Principe, CPA Yelena A. Belaks, CPA, MBA Anton Rayetskyy, CPA Happy Holidays to you and your families! #cohnreznick #hospitalitytax

Title: Maximizing Tax Savings: Navigating Entertainment Expenses in Business Introduction: In the ever-evolving landscape of tax regulations, it's crucial for businesses to stay informed and strategic in their expense management. One area that often garners attention is entertainment expenses. Defining Entertainment vs. Subsistence Costs: To optimize tax savings, it's essential to accurately distinguish between entertainment expenses and subsistence costs. Subsistence costs, such as meals while conducting business activities, remain allowable deductions in many jurisdictions. By adhering to the "Victor Pays" principle—where the individual benefiting most from the meal covers the cost—businesses can claim their share of subsistence expenses incurred during customer visits. This approach ensures that only eligible expenses are claimed, minimizing the risk of misclassification. Staff Entertaining: While entertainment expenses for clients may no longer be deductible, businesses can still leverage staff entertaining as a legitimate expense. Staff entertaining encompasses costs associated with hosting events or activities for employees, including food, drink, and entertainment. Unlike client entertainment, there is typically no limit on the amount a business can claim for staff entertaining. However, it's essential to maintain clarity regarding the motives behind these events, ensuring they are primarily for business purposes rather than personal enjoyment. Additionally, expenses must be reasonable and within industry norms to avoid potential scrutiny from tax authorities. Navigating Tax Implications: Understanding the tax implications of entertainment expenses is crucial for both employers and employees. Employers may be liable for Class 1A National Insurance contributions on benefits provided to staff, including entertainment. To mitigate potential tax liabilities for employees, employers can consider making voluntary settlements. Additionally, businesses should ensure proper accounting for VAT costs associated with entertainment expenses to accurately reflect their tax obligations. Annual Party Exemption: Businesses can take advantage of the annual party exemption to provide staff with enjoyable and morale-boosting events while minimizing tax burdens. Under this exemption, businesses can host annual parties or multiple separate events throughout the year, with each event exempt from Paye up to £150 per head. However, exceeding this limit nullifies the exemption for all events, highlighting the importance of careful planning and budgeting. #TaxDeductions #EntertainmentExpenses #BusinessTax #TaxTips #SmallBusinessFinance #ExpenseManagement #TaxSavings #BusinessExpenses #TaxLaw #AccountingTips

Attention all artists and performers! 🎭🎤 Navigating taxes can be as complex as your routines, but we're here to help. Dive in for crucial tax advice and learn how to avoid those tricky tax traps. https://ow.ly/1jLi50QP6K9 Keep your finances in the spotlight! #TaxTipsForEntertainers #EntertainmentCPA

How our tax system works. #christianbusinessowner #bibleandbusiness #executiveinsights @biblebusiness https://zurl.co/OS1m