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Stephen G.
Stephen G., Sr Financial Expert
Category: Finance
Satisfied Customers: 6178
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I have a few small questions for you, I thought I would

Customer Question

Hi Steve, I have a few small questions for you, I thought I would group them together if that is okay.1.When I record meals as a business expense, how necessary is it to record the person and reason for the business meeting with each meal?2.If I take a client to a concert, can I put this an entertainment expense as well?3.If I take a vacation, and review retail properties for new business ideas while there, how much of my vacation can I expense? Specifically the cost of the flight and hotel? Is this a weak reason for creating a business case for the trip?4.3. I received $8,000 via paypal for someone that bought out the lease on my car. It is not business related, but this will be reported on my paypal 1099k as income, how do I correctly account for this?
Submitted: 1 month ago.
Category: Finance
Expert:  Stephen G. replied 1 month ago.

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Expert:  Stephen G. replied 1 month ago.

I'll have to respond in the morning; I'm signing off for the night.

Expert:  Stephen G. replied 1 month ago.

I'll be happy to respond to your multiple questions this time; but since you are a subscription customer, we are compensated a minimal amount for each question we answer. So by not splitting up your questions, I am going to receive only 25% of what I would normally receive and it will not cost you any more or less to divide up the questions on different topics so that we cover only 1 topic at a time. Plus, just so you understand, doing it this way will usually result in somewhat abbreviated, although perfectly correct responses, rather than the detailed straight-forward analysis & answers that you are accustomed to from me. I like to try and cover any ancillary issues related to customer's questions when I can; I may not be able to do so when you combine several topics in one question.

Expert:  Stephen G. replied 1 month ago.

1.When I record meals as a business expense, how necessary is it to record the person and reason for the business meeting with each meal?

It is very necessary to do that or you may face the dis-allowance of the expenditure as a business expense. I suggest that you review IRS Publication 463, beginning on Page 25 and including Table 5-1 which contains a comprehensive listing of the minimum documentation required to meet IRS requirements. There's a lot to this, and you'll note the differences in the requirements for "Travel Expenses (away from home overnight)" and other general business expenses for example for legitimate Business Meals. Over the years, I've found that one of the most important elements is to record the business purpose of the entertainment/meals and if you are a salesman, (or in the case of many of us that perform several different functions) or performing selling activities, verses an executive taking customer executives out to lunch or dinner; the salesman is engaging in an activity that is much easier to justify rather than an executive taking his secretary out to lunch every day. That won't fly.

Here's a link to IRS Publication 463:

https://www.irs.gov/pub/irs-pdf/p463.pdf

Expert:  Stephen G. replied 1 month ago.

Unfortunately I answered all of the rest of your questions, but somehow the site erased my responses when I went to forward them to you.

I'm not going to do them all over again, for nothing, so you'll have to break them up into separate questions if you want me to respond to them.

As I said above, we are supposed to respond to one topic per question, so perhaps that's what happened; I don't know.

Just make sure your indicate "For Steve G" at the beginning of each question if you want me to respond.

I tried to do what you asked but unfortunately, it didn't work out.

Sorry, we'll have to do 1 at a time.