It’s a sad fact… The Tax Cuts and Job Act took a big bite out of a bunch of valuable business-meal and entertainment deductions. One really nice one that that took a 50-percent hit was the “supper money” deduction. What is that? It’s the fringe benefit that lets you provide your employees (and yourself!) with tax-free meal money when you’re working late. That’s right. … [Read more...]
Fringe Benefits
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Conflicting IRS rules for deducting your business gym
Thinking about setting up a tax-deductible gym for your employees? That makes a lot of sense. They’ll appreciate the chance to stay fit. And appreciate you for providing a wonderful fringe benefit. But be careful. Ever happy to confuse you, the IRS has created two different sets of regulations from two conflicting code sections. Want to make sure you follow the right … [Read more...]
S Corporation Fringe Benefits after the Recent Tax Reform
The recently passed tax-reform law has a lot to say about fringe benefits for shareholder-employees who own more than 2-percent of their S corporations. The good news? Federal tax law lets you treat the cost of fringe benefits as deductible expenses for your S corporation. The bad news? If you’re a more than 2-percent shareholder, you may have to pay additional taxes … [Read more...]
Tax reform’s penalty tax on transportation fringe benefits
Remember the good old days… a few months ago? Back then, when you provided your employees with transportation fringe benefits, you’d get a nice tax deduction. No more. Thanks to the new Tax Cuts and Jobs Act, employers now get stuck with a penalty-tax when they grant employees certain qualified tax-free transportation fringe benefits. Want to find out what the new law … [Read more...]
Yes, Tax Reform Did Kill Prospect and Client Meal Deductions
Want to take a client or a business prospect to lunch at a trendy restaurant? Go right ahead and enjoy the meal. Just don’t expect Uncle Sam to help pay for it. You see, thanks to recent so-called business-friendly tax reform, you can no longer deduct business meals. Those write-offs are dead and gone. Oh. I know. Some continuing education courses teach that business … [Read more...]