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View Diary: No country for Zuckerbergs (193 comments)

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  •  Meals & entertainment deductions are limited (0+ / 0-)

    for businesses.  

    the banquets with open bars - that's not taxed

    My Karma just ran over your Dogma

    by FoundingFatherDAR on Sun Oct 03, 2010 at 09:00:20 AM PDT

    [ Parent ]

    •  Limited (0+ / 0-)

      While meals and entertainment deductions are limited to less than 100%, it's not 0%. And those limits apply to meals and entertainment bought for clients and others not the corporation's employee. Employee living expenses, even a "per diem" daily cash handout, are not subject to those limits. Meanwhile the employee isn't eating and being entertained at home, for which they'd pay themselves, out of income from the corporation (and which would be taxed first as income). So those expenses aren't taxed at all, and the employee can demand less direct income from the corporation which would have been taxed.

      "When the going gets weird, the weird turn pro." - HST

      by DocGonzo on Sun Oct 03, 2010 at 09:32:23 AM PDT

      [ Parent ]

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