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Are you struggling to save money on your small business taxes? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to maximize meals and travel deductions, separate entertainment expenses from meals, and find a business purpose for all meetings that involve food or drinks.
Mike provides examples of deductible meal expenses such as dining with prospects or staff members, company parties and presentations, team-building activities, recreational events and more.
Mike adds more items that are eligible for deductions, which are transportation costs, lodging expenses, and rental cars.
Tune in now as Mike shares an example of how a road trip can be used as both a business trip and a personal vacation if planned correctly!
[00:00] Maximizing Tax Deductions For Meals And Travel
- Today’s episode is all about maximizing meals and travel deductions!
- Mike states that starting in 2018 with the Tax Cuts and Jobs Act, entertainment expenses are no longer deductible, but the meal portion around that entertainment can be expenses
[01:38] Unlocking The Potential Of Travel Expenses
- Company parties or presentations and food for restaurants are 100% deductible
- Meals are generally 50% deductible when dining with a prospect, client, vendor, staff member, or team member
- Mike provides examples of expenses:
- Potential client/employee team meals
- Company parties/presentations
- Office meals and food
- Food and drinks at golf outings
- Team building/recreational events
- Meals at a country club
[13:59] Maximizing Business Deductions And Write-Offs
- Meal and drink of a country club membership is deductible if used for business purposes
- Solo meals and drinks are deductible if it is part of a business meeting or on an overnight trip
- Travel expenses such as transportation, lodging, car rentals, tolls, parking, taxies, Uber are deductible
- What is considered a “Business day”?
[15: 53] Closing Segment
- Mike shares how a road trip can be used as both a business trip and a personal vacation if it’s planned correctly!
- Final Words
Key Quotes
“Don't get greedy. Do the sniff test on these items, and make sure you're documenting and supporting to help back all this up.” – Mike Jesowshek
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
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Podcast Website: https://www.TaxSavingsPodcast.com
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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com
