Happy Monday, fabulous!
I hope you had an amazing week and weekend! This past week was great. I am so overwhelmed (in a good way!) by the signups for my new Money and Mimosas community. It's so exciting for me to meet such inspiring business owners who are ready to break through six figures AND become financially savvy in their business.
While I had a lot of work to do this past week, I made time to take care of my health and body.
Speaking of ice cold adult beverages. Are these a tax write-off? Can you write off meals and entertainment?
Well, the answer is YES. How awesome is that. Hopefully you've been keeping track of your meals and entertainment purchases throughout the year so you can write them off.
Is there a catch?
Well...the answer is yes. There are a few catches.
- Generally speaking you can only write off 50% of the meals and entertainment cost.
- You have to demonstrate whether this is a normal occurrence for business (i.e. do you have to incur these expenses in order to generate an income) or if this is for "goodwill" or community building purposes.
- You have to demonstrate that it is not lavish or extravagant.
Hmmmm, that sounds like a huge gray area. And it is! For more information, check out the IRS' guidelines on meals and entertainment by clicking here.
Take Action Now.
Calculate your entertainment expenses for 2014 and determine which area they fall into.
- Start tracking your meals and entertainment expenses for 2015 now by using a bookkeeping program and working with an accountability partner to make sure you stay on top of your books.
Because as a business owner, the responsibility ultimately falls upon you to make sure your expenses are categorized correctly and you aren't overpaying your taxes.
If you need an accountability partner, check out my new community for fabulous entrepreneurs like yourself. This is specifically for you if breaking through six figures is your goal for 2015.
In order to break through six figures, you must stay on top of books. You can do it. I believe in you.
Danetha Doe is the founder and creator of Money and Mimosas. Our mission is to help every woman become financially independent.