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Have Your Company buy you dinner? Tax Return and Tax Prep Milwaukee

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If you are in a partnership or a shareholder-employee in a regular C or S corporation, and you have to work overtime, your company can, on occasion, provide you with meal money for dinner. The cost of this “fringe benefit” is 100% deductible for your company under Section 132 of the Internal Revenue Code and you don’t have to pay personal income tax on the value of the meal.

Your company can pay directly for the meal or can instead, provide you with dinner money. But, in order for this to work, the amount of money you receive for your meal must be reasonable. If the IRS decides that the amount of money you received from your employer was unreasonable, the entire amount will be considered taxable personal income and will not be deductible.

We will be glad to answer your questions concerning deductible meals related to overtime and any other questions you might have about the Section 132 “de minimis” fringe benefit.

- See more at: http://sbasgroup.com/taxstrategies-businessowners.php?item=132&catid=26&cat=7+Ways+To+Save+Even+More+Income+Taxes#1



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