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You can get a list of employee benefits that would be deductible in publication 15, Fringe Benefits Overview.
You can access that publication, here: http://www.irs.gov/publications/p15b/ar02.html
Do you have any questions about any particular benefits?
The publication is quite extensive and gives detailed information about the deductible expenses
Thanks! I will read that. Yes. First question is: how do we classify ourselves? The company is an LLC and we are all owners. Does that also make us employees? I want to make sure I use the right words because the rules are so specific.
You are actually Partners. An LLC is no different than a partnership
OK. How about auto expenses? We are flipping houses. We don't have an office. We meet at real estate agent offices or the house we're working on. The idea of keeping a log for mileage is so onerous 95% of my miles are for business. Do I have to keep a log?
You can write off only the portion of the vehicles that is used for business purposes
You can write off actual expenses or mileage, and to tell you the truth mileage is a better deal typically
So I do need to keep the log?
Yes, you will need to keep a log of mileage
It'd be less work to write down the driving I do for personal reasons as there's much less of it. Could that be the log and everything else is business?
You really need a log for business
OK I have to reconstruct it for this year. Do you think it makes sense for the company to have a vehicle? I was wondering if that would be a deduction. We really need a truck but you know it'd end up being used for personal reasons and then what do you do.
whether the company owns the vehicle or you own the vehicle it doesn't matter - the expense is the same
It's best to own it personally if it's ever used for personal
I was thinking I'd be able to deduct the actual cost of the vehicle on schedule c.
yes, you can deduct actual expenses or mileage, and mileage usually works out better on the long run
ah I see what you're saying.
And once you choose actual expenses you can't ever claim mileage
And either way I have to keep the log! :)
Yes that's correct
We eat out a lot because we're on site. Can the company give the partners per diems for that? Would it be deductible?
Yes, you can and yes that would be deductible
So that's a way for us to save taxes... we're going to spend the money anyway but this way we get a tax break. That's the kind of thing I'm looking for. I see the gym is not an option because it'd have to be on our premises.
Yes, that is true
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thank you I will be happy to do that.
I keep getting requests to respond to your last post so I'm responding here :)