When Business Meals and Entertainment Are Deductible

Article Highlights: Ordinary and Necessary Directly-Related Test Associated-With Test Lavish Substantiation Requirements An often asked question is: are meals and entertainment deductible in the course of one’s business, and if so, under what circumstances? This type of expense requires you to comply with some pretty complicated qualifications, and if you can jump through the hoops, the expenses may be deductible in certain cases. But before we go too far, know that unreimbursed meal expenses incurred while out of town overnight on business are always deductible but generally limited to 50% of the cost. The focus of this article is the deductibility of meals and attendance at events in th

When is a Charitable Contribution Appraisal Required?

Article Highlights: Substantiation and Documentation Requirements Deductions of less than $250 Deductions of $250 to $500 Deductions over $500 but not over $5,000 Deductions over $5,000 Qualified Appraisal Appraisal Timing A commonly overlooked requirement of taking a tax deduction for donating clothing and household goods to charity is the substantiation requirement, for both what is donated and the value placed on the donation. Because the IRS has encountered so much abuse in this area, it has increased the donation verification requirements over the years, and taxpayers risk losing the deduction if their donations are not correctly documented and reasonably valued. Fair Market Value –

Are You Considering Converting Your Home Into A Rental?

Article Highlights: Home Sale Gain Exclusion Home Sale Loss Rule Mortgage Interest Deductions When individuals buy new homes, they often consider turning their old homes into rentals rather than selling them. All too often, that decision is made without considering the tax implications. Converting a former residence into a rental may also happen when two individuals who each own a home get married or when individuals move to a new area but don’t want to sell their former homes. Whatever the reasons, the following tax circumstances should be considered before making that decision. Home Sale Gain Exclusion – When an individual has owned and occupied a home as a primary residence for 2 of th

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