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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3091
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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How does this work? What are your fees? I own an S-Corp and

Customer Question

How does this work? What are your fees?
JA: The Accountant will know how to help. You just pay a $5 deposit now and the rest only when you get a reply from the Accountant. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason.
Customer: I own an S-Corp and I want to take my family to Hawaii for a 30 year celebration. Can I put them all on the board of directors and then claim travel/entertainment expenses for all of them?
JA: Is there anything else important you think the Accountant should know?
Customer: No
Submitted: 4 months ago.
Category: Tax
Expert:  Barbara replied 4 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You could, but the IRS will not accept it. They will disallow the expenses.

Please remember that tax fraud is a taxpayer's intent to defraud the government by not paying taxes that he/she knows are lawfully due. In this case, you are suggesting to deduct expenses that do not pertain to your business but which would reduce your income. The information you provided states that the trip is a family celebration and has nothing to do with business.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Customer: replied 4 months ago.
That's what I thought.
Expert:  Barbara replied 4 months ago.

I guess it was worth a try just to be sure, right?

Please take a moment to rate my answer since that is the only way I receive credit for answering you today.

Barb

Expert:  Barbara replied 4 months ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can assist you further.

Best regards,

Barb

Customer: replied 4 months ago.
I was thinking last night and maybe I did not completely explain. My company is celebrating 30 years of business. My wife and I are the only two employees and we want to throw a company party in Hawaii. It just so happens that we want to invite family members to join the celebration. How much of the expenses can I deduct from my income?
Expert:  Barbara replied 4 months ago.

The IRS is on the lookout for taxpayers who try to classify a nondeductible personal trip as a deductible business trip. So, if you travel to a destination and engage in both personal and business activities, you can deduct your traveling expenses to and from the destination only if the trip is primarily related to your business.

The primary purpose of a trip is determined by looking at the facts and circumstances of each case. An important factor is the amount of time you spent on personal activities during the trip as compared to the amount of time spent on activities directly relating to business. Travel expenses outside the U.S. may be further limited if any part of your trip is for personal purposes.

If the trip is primarily personal in nature, none of your traveling expenses are deductible. This is true even if you engage in some business activities while you are there. (However, you may be able to deduct particular expenses you incur while you're at your destination if they otherwise qualify as business deductions.)

http://www.bizfilings.com/toolkit/sbg/tax-info/fed-taxes/deducting-business-related-travel-expenses.aspx

Expert:  Barbara replied 4 months ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can further assist you.

Best regards,

Barb