Meals & Entertainment

In this write off category in Schedule C... What is permitted, not permitted. I have had people tell me mixed things...

If I have a meal afterwards at Whataburger with my friend after a gig? Is that deductable?

I will preface my answer by saying, this is a question for an accountant.

Also I have undergone 3 IRS audits successfully.

In a nutshell meals are not deductible, "Entertainment" expenses are deductible. Costs incurred in the pursuit of business, additional revenue, or to maintain existing revenue........with/for the client are considered tax deductible.

That's a huge generalization......there are reams of tax code on this very point, and it is changing all the time. Some of the Bureau's publications on this very subject are not bad as far as explaining the differences.

So in your example, unless your friend is the client, then it's not deductible. If He is an employee, then a whole different set of rules apply.......too varied to do in this thread, it suffices to say that if the expense is in the "employee development" area it might be covered

You need to talk to a or your tax guy... If I understand the way my guy does it, I have to be so many miles away from my house before I can deduct meals. I wanna say 50, but since I moved to Maui, it doesn't matter, I can't do a gig 50 miles away or be gone over night.

You can write off anything you want, it's just a matter what you say when and if you get audited! LOL

Anything you can get away with :)

Meals are fully deductible if you are meeting with a 'client/customer', and discussing a business transaction ;)

Figure it this way -- deduct everything, and if you get audited and lose (poor planning on your part), you have to send them a check for a few bucks -- no biggy.

Anything you can get away with :)

Meals are fully deductible if you are meeting with a 'client/customer', and discussing a business transaction ;)

Figure it this way -- deduct everything, and if you get audited and lose (poor planning on your part), you have to send them a check for a few bucks -- no biggy.

The big No-No is to not declare income.......ask Al Capone how smart that was....???