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Discussion in 'Business Operations' started by HOMER, Mar 11, 2001.

  1. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    I was in my convenience store, the one I use just about every day, buying supper! When I checked out the girl asked me if I needed my receipt, I said no. She told me that everybody else gets their receipt for food why didn.t we?

    Question: How many of you use food receipts for tax purposes. I only use food if it is a legitimate reason or if we are traveling out of town to do work. What is the rule on lunches. If I can use them I have missed out on a whole lot of money this past year!

  2. Skookum

    Skookum LawnSite Senior Member
    Messages: 675

    I know Semi truck drivers take off meals at about $35 - $100 PER day according to a driver I know that just had his taxes done by an accountant that does alot of drivers. He claimed his accountant said no receipt required!

    If you pay a sales tax on dine out food like we do here, you could be using that amount of sales tax on your returns if you have enough to itemize and do not take the standard deductions.

    My wife and I BUY TOO MUCH stuff and eat out way TOO MUCH, so we are trying it this year. We save ALL receipts for the sales tax. I have not finished this last years yet, and we started mid year last year doing this, so I am not sure for last years. But, as much as we buy, I think we will have more in sales tax along with the other itemized things to come out way over the standard deductions.

    I know years ago, I read that meals are a real hard thing for the IRS to disprove, that is why they only allow a percentage of the total. I recall the theroy was, if you discussed business at any point during the meal, then it was a valid expense. My wife and I use to joke years ago when eating out, she would say "So how's the business doing" while handing me the receipt as we left the resturaunt.
  3. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

    homer i keep my recieps for lunches as a deductable for taxes but couldn't use them because of my new equipment purches. keep them and give them to your tax man/lady and they will find a way to use it as a loss.
  4. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    so its the sales tax and not the amount of the meal?
  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    I use my Company Card on ALL purchases ...business related of course ...;->
  6. Skookum

    Skookum LawnSite Senior Member
    Messages: 675


    It can be both, sales tax and total!
  7. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    Boy have I been missin the boat!
  8. Island Lawn

    Island Lawn LawnSite Senior Member
    Messages: 632

    HOMER, Is your moo-moo getting shorter?
    I think you are showing more ankle lately!(LOL)

    I use bus check for all bus exp. Where they wont take checks, I use my bus chkng deit card
    Weird how plastic is honored more than paper from the same acct!
    I use that plastic to pay at the pump! I pack my own lunch and dont go into the...
    Temptation Island of Convience!
  9. SLSNursery

    SLSNursery LawnSite Senior Member
    Messages: 442

    We expense any food bought for the crews. This includes when/if I buy coffees, lunches, etc. We also have a kitchen at the shop, so all the food there is expensed too. My understanding from our accountant is that for our company set up (LLC) which is like a partnership, the food for workers is a 100% expense. Food for partners/owners is 50% deductible. We keep all receipts, especially for cash disbursements. This way its provable, and also, when entered into Quickbooks for instance you can see exactly how much was spent.

    When we were building our shop, with no facility and only had a refrigerator and shelf in an office trailer for food, we kept track of all the coffee stops. At that time, my wife would often make us picnic lunches, and bring them in at lunch time. Nonetheless, we spent thousands at Dunkin Donuts, and you wouldn't believe it except when it all got tallied up at the end of the year. When the building was finished, I plumbed in a commercial coffee maker into the kitchen, and one into the shop. This cut the D&D budget way down. Now I don't really buy coffee to go at all anymore. But everytime the company buys lunch, I add the receipt.
  10. Majestic

    Majestic LawnSite Member
    Messages: 42

    I know the lunch has to be business related such as meeting with customer or employees,I also thought it was only 50% deductible.My accountant warns too many lunches could red flag your tax form.We do one lunch meeting a week.

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