I was hoping to get some advice in regards to a new business that I am starting. I want to start a website about events in my hometown. I also want to have a section for restaurant reviews here in town. Ok, here’s the question - If I go to a restaurant and review it and have it on my site, can I write the meal off on my taxes?
Tax question - meals
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Ask a tax specialist.
On the one hand, you had to eat anyway, so it's a "NO". BUT you might not have eaten there if it weren't for the review.
On the one hand, you had to eat anyway, so it's a "NO". BUT you might not have eaten there if it weren't for the review.
You can't legally write anything off as a business expense unless your business has a reasonable chance of turning a profit. If you can't definitively prove that to the IRS, you're playing with fire.
I'd have to agree that you need to show that this is a business as opposed to a hobby. A business plan is a good idea anytime you start a business, and that could also show the IRS how you expect to turn a profit.
Now, if you can establish that this is a business, then see below.
Generally, business meals are 50% deductible, but you need to keep good records. For your purposes, it'd be a good idea to record the date of the review and keep that with the receipt to show business purpose.
One good way to show proof that your intent is profit is how much time and effort you put into the venture - and not just eating. Maintain a log of your daily time spent working on your website/blog. Include research, posting on forums for answers, etc. ANYTHING that relates to getting your site launched and running. You may also want to consider adding other affiliate marketing services to the site for an attempt at additional revenue.
Also, any professional or educational background you have in the topics you wish to write about will serve you well as far as proving you have the ability to make a profitable business out of your venture. So if you don't have experience in anything you've considered adding to your site, think about some items that you are an expert in and add those as well.
The deduction is limited to 50% and it should be for your meal only - not anyone elses.
BTW - I'm a degreed accountant, fiction author and freelance writer.
Good luck!
Also, any professional or educational background you have in the topics you wish to write about will serve you well as far as proving you have the ability to make a profitable business out of your venture. So if you don't have experience in anything you've considered adding to your site, think about some items that you are an expert in and add those as well.
The deduction is limited to 50% and it should be for your meal only - not anyone elses.
BTW - I'm a degreed accountant, fiction author and freelance writer.
Good luck!
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also check out the downloadable brochures from www.irs.gov
They're a little dense, but it will talk you through allowable business expenses.
They're a little dense, but it will talk you through allowable business expenses.
Also, it seems that the title of this forum seems to be throwing people off a bit. We changed it a while ago because it was getting huge amounts of spam, but maybe we need to look at it again.
This forum is for business and technical writing interests, not specifically the business and technical side of websites or writing-related subjects.
This is not to disparage the good will of the people who offered suggestions here, like Jana above, it just isn't the purpose of this forum.
This forum is for business and technical writing interests, not specifically the business and technical side of websites or writing-related subjects.
This is not to disparage the good will of the people who offered suggestions here, like Jana above, it just isn't the purpose of this forum.
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I think changing the name to 'Business Writing and Tech Writing' would be a good idea, unless that's what it was before?
At the very least, maybe you could add one of those text descriptions like most of the other forums have? (/derail)
I think there are arguable exceptions about the last part.
Often, a restaurant reviewer will take someone else with them so that between them they can order twice as many items and hopefully give a more balanced review of the place. If the review is written in this manner, I would claim both meals.
I strongly disagree with StephenF's assessment - a tax professional has an ethical obligation to find every legitimate deduction possible.
I think changing the name to 'Business Writing and Tech Writing' would be a good idea, unless that's what it was before?
At the very least, maybe you could add one of those text descriptions like most of the other forums have? (/derail)
That is what the forum title was before--or something very similar...
maybe yes on the description, although that might also trigger the spam.
Thanks for your input...
<end derail>
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What you say is true.As a tax pro you must also know that the priority in running any business is having an income to pay the tax.Paying tax is the easy part. Also would you advise a client to consult a writing website for tax advice and take any advise ,however well intentioned the the advise is given ,without taking some kind of informed opinion.
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I do. I also know that very few start-ups make money their first year. A business model that has reasonable expectations of generating enough revenue to cover costs (after a reasonable period of operation) deserves a thorough and accurate calculation of any possible deductions.
This would NOT be a Schedule A deduction - that is for unreimbursed employee expenses from an employer who gives you a W-2 or a 1099. This would be on Schedule C, and as this is a sole proprietorship there isn't any distinction between expenses paid by the indivudual and expenses paid by the company.
The original poster should keep in mind that when the site does generate revenue, it goes on Schedule C as well, which requires the payment of "self-employment tax" - the 15% (approximately) for Social Security and Medicare that is normally paid half by the employee and half by the employer.
No. Not unless you are established in that field and turning a profit, or expecting to turn a profit.
nice try though.
nice try though.
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