By month: January 2009

It’s Ski Season—Let’s Make Your Skiing Deductible

The first thing to get straight with the skiing deduction is that it is deductible as associated entertainment. Thus, you need a bona fide business discussion in a business setting before or after the skiing. If you are staying overnight, remember that lodging for business entertainment purposes is not deductible, but lodging for business education or meetings is deductible.


Discriminate with Your 105 Plan

Use this Section 105 medical reimbursement plan template to make sure you provide maximum medical benefits to you and your family while legally discriminating under both tax law and ERISA rules.


Tips to Audit-Proof Your Records

The law gives you no choice but to keep the proper tax records on a timely basis. This is pretty easy when you know what to do. One easy rule to follow is to never commingle your activities in your bank accounts. Both the rule that requires a mileage log and the rule that requires a time log are more difficult, but absolutely essential to proving your deductions.

Big Budget Deficit

The Congressional Budget Office estimates that this year’s federal budget deficit will top last year’s by more than 250 percent.

Weekly Lunches

Every business meal absorbs your personal consumption, and the IRS allows that consumption as a business expense almost all the time. But the IRS can, whenever it gets the urge, invoke Sutter to destroy your deductions.

Recruiting Expense

You may deduct travel, meals, and lodging in an unsuccessful attempt to hire an employee.


Dinner with Husband

You are talking to yourself (for tax purposes) when you discuss business with your husband over dinner. This is a nondeductible experience.

Dependent Care Credit

The sole proprietor may not claim a business deduction for child care that enables him to work. The tax benefit for this type of child care comes on the personal income tax return as a dependent care credit.


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