Estimated tax tip savings. Most business meals suffer a 50 percent cut in the amount you can deduct. But here’s one of those business meal strategies that produces a 100 percent deduction. So if you spend $5,000 for meals with this strategy, you don’t deduct $2,500 because of the 50 percent cut. Instead, you deduct the full $5,000.
We don’t like the 50 percent cut that applies to most business meals. For example, say you take your employees to a restaurant for a business meeting; you suffer the 50 percent cut on your tax deduction for the cost of meals and beverages. That certainly seems unfair to us.
As a subscriber, you likely know that some types of business meals are not subject to the 50 percent cut. And with respect to that business meeting with your employees above, there is a way to have that business meeting with the same people and, with one change, enable the 100 percent deduction for the food and beverage cost.
The one change we are talking about not only qualifies for the 100 percent deduction but also enables you to give employees a free lunch or other meal. With this one easy change, you can pick the employees who will benefit, choose what the meals are, and choose when and why the meals are free. ... Log in to view full article.
