You probably know that Uncle Sam limits most of your business-meal deductions to just 50% of what you spend.
You also probably know that you can ignore the 50% limit and write off 100% of meal-costs under certain circumstances (like throwing an employee party or holding an employee meeting on your business premises).
What you may not know is that because of a recent precedent-setting case, there are brand new opportunities for making meals completely deductible.
You’ll learn how take advantage of them when you read my new article titled Tax Tips: A New Way to Beat the 50 Percent Cut on Business Meals!
Three ways our fact-filled article can help you:
- We’ll tell you what Jeremy and Margaret Jacobs were up against. The couple, who owns the Boston Bruins hockey team, paid for staff meals while the team was out of town for games. They deducted 100% of the meal-cost on their tax returns, but the IRS said the 50% limitation applied. Did the Jacobs fold and write a check? No! They fought back as you’ll learn when you read the full article.
- We’ll explain how the Jacobs scored against the IRS. The couple appealed to the Tax Court and argued that the meal expenses weren’t subject to the 50% limitation because they served as a “de minimis” fringe benefit. Luckily for them, and all taxpayers, the court agreed and the couple won their 100% deduction. You’ll get all the details when you read the full article.
- You’ll learn how the Tax Court decision can help you too. The Tax Court stated that the de minimis exception to the 50% rule applies if the taxpayer meets six requirements — all of which the Jacobs met. What exactly are these requirements? We’ll explain them in detail when you read the full article.