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Tax person out there?

Habanero

Cyburbian
Messages
3,241
Points
27
If you claim a business expense on your tax form, who really ends up paying for that?

It was a topic during lunch and no one knows the answer-

Thanks!
 

gkmo62u

Cyburbian
Messages
1,046
Points
24
My answer, no one "pays for it" in the sense that you assume another taxpayer pays for it. It is not something that requires being paid for.

In fact, the reason for the permitted deduction is that your business, by buying supplies, building factories, paying salaries, otherwise investing in the "economy" is so much more tax positive as a result of the benefits of not having to send the money to washington for whatever.
 

Habanero

Cyburbian
Messages
3,241
Points
27
okay, but if you're counting lunches as a business expense for taking out clients I wouldn't see that as a viable excuse to not send money to the government.. is there a limit every year to how much you can claim?
 

gkmo62u

Cyburbian
Messages
1,046
Points
24
Tex:

we are going to need help from a Real Tax person on this. I hear you.

I believe there are parameters but don't claim to know the specifics.

I presume the arguement might be like this: I take you out to lunch 4x at $60.00 buck a pop. $240.00 bucks so called itemized deduction. But those lunches led to you and I signing a deal for me to buy 6 million dollars worth of wigits from you. And because of this order, you had to expand your wigit factory and hire 100 new persons....

I may be way out there on this so take it as a grain of salt.

Oh and to editorialize: It is My Money, is it not? So the less I send to Washington, the smaller government is, the better.
 

Habanero

Cyburbian
Messages
3,241
Points
27
gkmo62u said:
...you had to expand your wigit factory and hire 100 new persons....

Oh, I like widgits! : )

I just got in contact with a tax guy for this, I just think it's a little backwards if I could count friends as "clients" and comp our lunch at Hooters-
 
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