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justgeorge
05-01-2006, 11:03 PM
I just hired my first employee and will be providing drinks (gatorade, pop, ice water) and snacks on the jobsite all summer long. Is that going to be a deductible expense? I don't see that categoy in Quickbooks, other than "other expense".

Thanks,
George

topsites
05-02-2006, 12:58 AM
I just hired my first employee and will be providing drinks (gatorade, pop, ice water) and snacks on the jobsite all summer long. Is that going to be a deductible expense? I don't see that categoy in Quickbooks, other than "other expense".

Thanks,
George

There's no Meals category? I know it ain't a meal but I would use that, it does fall under food and drink, anyhow.

justgeorge
05-02-2006, 07:35 AM
There's no Meals category? I know it ain't a meal but I would use that, it does fall under food and drink, anyhow.
There is a meals category but that's under "travel and entertainment", which I believe is limited to 50% of the expense. I'll keep searching.....

justgeorge
05-02-2006, 07:39 AM
Aha - found it on the IRS web site:

"Deduction limit on meals. You can generally deduct only 50% of the cost of furnishing meals to your employees. However, you can deduct the full cost of the following meals.

Meals that qualify as a de minimus fringe benefit as discussed in section 2 of Publication 15-B. This generally includes meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. "

That should cover it, now I just have to figure out how to code it in QuickBooks.

Thanks,
George

JJLandscapes
05-02-2006, 10:35 PM
you wont get in trouble even if you do 200% of the value....

now if you report 10k in profit when you own a house and 5 cars then you will get audited