Here are two important facts you may not know:
FACT #1: Under the right circumstances, you can provide tax-free lunches to your employees. A nice fringe benefit to be sure!
FACT #2: As the business owner, you can also qualify for tax free lunches if you know how to play the game.
You’ll learn how, when you read my new article titled Tax Tips: Tax-Free Lunches for Employees.
Three ways our fact-filled article can help you:
- You’ll learn the right way to deduct the cost of lunches. To deduct the cost of the meals, the lunches must be furnished to your employees on your business premises “for the convenience of the employer.” What does “convenience” mean according to the IRS. You’ll find out when you read the full article.
- You’ll learn why you must provide the meals for “a substantial business reason.” We’ll outline four such valid reasons when you read the full article.
- We’ll explain why you should beware of the “Compensatory Reason.” The IRS says that meals that you provide to promote morale or goodwill, or to attract prospective employees, are meals furnished for compensatory business reasons, and such meals are not tax-free to the employees. Is this the end of the matter? Not at all as you’ll discover when you read the full article.