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Supplying drinks and snacks, deductible?

Discussion in 'Business Operations' started by justgeorge, May 1, 2006.

  1. justgeorge

    justgeorge LawnSite Senior Member
    Posts: 352

    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".

  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    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.
  3. justgeorge

    justgeorge LawnSite Senior Member
    Posts: 352

    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.....
  4. justgeorge

    justgeorge LawnSite Senior Member
    Posts: 352

    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.

  5. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    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

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