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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am 25% owner of a 3-person company. We are all owners. We

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I am 25% owner of a 3-person company. We are all owners. We have no employees. Is there a list I can reference of what benefits the company can give us that would then be deductible? I would like the company to give the owners benefits that the IRS will approve of as deductions.

MyVirtualCPA :

Hello, and welcome to JustAnswer.com. How are you tonight?

MyVirtualCPA :

You can get a list of employee benefits that would be deductible in publication 15, Fringe Benefits Overview.

MyVirtualCPA :

You can access that publication, here: http://www.irs.gov/publications/p15b/ar02.html

MyVirtualCPA :

Do you have any questions about any particular benefits?

MyVirtualCPA :

The publication is quite extensive and gives detailed information about the deductible expenses

Customer:

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.

MyVirtualCPA :

You are actually Partners. An LLC is no different than a partnership

Customer:

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?

MyVirtualCPA :

You can write off only the portion of the vehicles that is used for business purposes

MyVirtualCPA :

You can write off actual expenses or mileage, and to tell you the truth mileage is a better deal typically

Customer:

So I do need to keep the log?

MyVirtualCPA :

Yes, you will need to keep a log of mileage

Customer:

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?

MyVirtualCPA :

You really need a log for business

Customer:

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.

MyVirtualCPA :

whether the company owns the vehicle or you own the vehicle it doesn't matter - the expense is the same

MyVirtualCPA :

It's best to own it personally if it's ever used for personal

Customer:

I was thinking I'd be able to deduct the actual cost of the vehicle on schedule c.

MyVirtualCPA :

yes, you can deduct actual expenses or mileage, and mileage usually works out better on the long run

Customer:

ah I see what you're saying.

MyVirtualCPA :

And once you choose actual expenses you can't ever claim mileage

Customer:

And either way I have to keep the log! :)

MyVirtualCPA :

Yes that's correct

Customer:

We eat out a lot because we're on site. Can the company give the partners per diems for that? Would it be deductible?

MyVirtualCPA :

Yes, you can and yes that would be deductible

Customer:

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.

MyVirtualCPA :

Yes, that is true

MyVirtualCPA :

Is there anything else I can assist you with? If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

thank you I will be happy to do that.

Megan C and other Finance Specialists are ready to help you
Thanks for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.
Customer: replied 3 years ago.

I keep getting requests to respond to your last post so I'm responding here :)