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Tax Law (Questions About Taxes)/Deductions for conference host

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Question
I present educational conferences for broadcasters. As part of our program, a luncheon and cocktail reception is included. Someone recently told me I can only deduct 50% of food/bev. costs.  Numerous top CPAs' have told me it's quite the contrary. That given these concessions are part of a complete ticket that ALL associated f/b is deductible.

Considering the fact that all registration is claimed as income, the later would certainly seem true. Plus, the fact that an attendee can claim a full deduction.

Where in the tax code can the CPAs' opinions be supported?

Answer
This is a good example of why you need to manage your own tax issues.

The CPA's that say that only 50% of meals are deductible are correct. http://www.irs.gov/publications/p535/ch11.html

But your situation doesn't fit squarely into the bucket regarding your meals during the normal course of doing your business.

You are not expensing a meal against other sources of revenue. You are in the business of providing meals and are simply purchasing and reselling a product (food), as part of a bigger package of services.

Consider a restaurant, hotel, Bar/Club. Do they only get to deduct 1/2 of the costs of their food purchases?

Again, There are a lot of interpretations, The above is only one. It is only the right one of YOU feel that YOU can justify it as a REASONBLE AND NECESSARY BUSINESS EXPENSE. That is the IRS' verbage, and the responsible party. Everyone else's opinion doesn't matter, including an auditor, CPA, EA, Tax Preparer, Bookkeeper, brother-in-law, neighbor.

CAN YOU JUSTIFY IT?

Then you can take it as a deduction. If you can't then you shouldn't. No matter that someone else thinks they can.

Richard Fritzler

Tax Law (Questions About Taxes)

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Richard Fritzler

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Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.

Experience

I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

Organizations
National Small Business Owners Association.
Publications
Contributing author to "The Corporate Standard Newsletter".


Publications
Contributing author to "The Corporate Standard Newsletter".
Ezinearticles.com articlesbase.com

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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