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Posted by Harlan Lunsford on November 10, 2006, 2:02 am
Please log in for more thread options Elizabeth wrote:
> L K Williams wrote:
>> What other things could be called necessary and paid by the
>> business, so as to make them deductible? Maybe we should
>> start a poll?
> hmmm...
>
> * business owner sets up secondary office in his home and
> what used to be "communting miles" become "business miles"
I wouldn't dare try this one. Any business expense must be
ordinary and necessary, and if my Sub S corporation has a
primary office in town where all my clients are, there is
absolutely no reason for me to have another office at home.
I THINK this was tried once upon a time.
> * Sub-S Corp, owned by only one person, establishes
> health-care insurance plan for families of employees, and
> then employees only his own spouse, thus making his family
> health care deductable for the business.
what about the related party rules which would attribute
spousal benefits to the 2% plus owner? In short, this
sounds like a section 105 plan which is not for corporate
personnel.
> * Consultant deducts his lunches and dinners every day he
> is servicing a client outside of his own office (i.e. "on
> the road"), thus making many of his meals 50% business
> deduction.
"On the road" means out of town overnight. Meals while in
town, at your tax home do not qualify.
> * office in home makes percentage of utilities, homeowners
> insurance, repairs, rent (or depreciation) and maintenance
> into business deductions (rather than non-deductible
> personal expenses) + percentage of RE taxes and mortgage
> insurance become business deductions which may or may not
> have been deductible from personal return.
>
> Isn't part of our job to help our clients structure their
> businesses in such a way that they get the maximum legal
> deductiblity of expenses?
By all means that is our job, to use all legal means and tax
options for our clients.
ChEAr$,
Harlan Lunsford, EA n LA
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