Last month we explained why it’s vitally important to know the law if you want to successfully deduct a beach house, ski chalet, yacht, hunting cabin, or other “entertainment facility.”
In this article, Part 2, you’ll learn how to get a nice tax deduction when you use the facility as compensation to certain others.
But, as always when you deal with the IRS, the devil is in the details and we’ll explain them in easy-to-understand language when you read my new article titled Tax Tips: Tax Deductions for Entertainment Facilities (Part 2), W-2 and 1099.
Three ways our fact-filled article can help you:
- We’ll explain the difference between “specified” and “non-specified” individuals. The tax law makes a distinction between two classes of people who might use your entertainment facility as compensation for services. Understanding the law can save you a lot of money as you’ll discover when you read the full article.
- You’ll learn how to keep Uncle Sam happy when you calculate your deductions. Do employees, contractors, and/or customers use your entertainment facility? If they do, you’ll need to know how to apply the relevant W-2 and 1099 tax rules. You’ll get the whole story when you read the full article.
- We’ll tell you how to avoid becoming an IRS target. If you own 10% or more of your company, and are therefore not a rank-and-file employee, the IRS can be very picky about what they’ll let you deduct. We’ll show you how to stay on the right side of the law when you read the full article.