Timeline for Self-employed net income for affordable housing - valid to take from profit/loss?
Current License: CC BY-SA 4.0
8 events
| when toggle format | what | by | license | comment | |
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| Dec 20, 2018 at 4:54 | comment | added | Justin Cave | @ina - The current rule is that you can deduct 50% of legitimate business meals and entertainment. That got amended recently and the new rules aren't finalized last I looked. Business meals may be becoming non-deductible but I believe the IRS was going to allow meals but disallow entertainment expenses. But if you are self-employed and thinking of deducting meals, you'd want to have a good talk with your accountant to fully understand the rules and limitations. | |
| Dec 20, 2018 at 1:53 | comment | added | ina | Oh, where is the 50% from? | |
| Dec 20, 2018 at 1:26 | comment | added | Justin Cave | @ina - If you're taking prospective clients out to dinner to talk about a potential business opportunity and paying for everyone's meals, that is potentially 50% deductible as a business expense (though that is subject to change over time). If you're just buying yourself lunch and eating while working, that's not going to be deductible. Of course, this can quickly get complicated which is why most self-employed folks work with accountants to make sure they're deducting things appropriately | |
| Dec 20, 2018 at 1:09 | comment | added | ina | I was told that if I work during lunch or hold meal-related meetings, then it is a business expense. | |
| Dec 19, 2018 at 18:34 | history | edited | Justin Cave | CC BY-SA 4.0 |
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| Dec 19, 2018 at 4:23 | comment | added | Justin Cave | @ina - If you're self-employed, living expenses, food, and transportation are definitely not business expenses, they're personal expenses. You only deduct business expenses from business income to determine your self-employed income. That's the income that you can use to pay for your personal expenses. | |
| Dec 19, 2018 at 4:15 | comment | added | ina | I'm not sure what salary refers to in self-employment. For self employment, pretty much most expenses are living expenses, from the food that you eat to the transportation that gets you places. | |
| Dec 18, 2018 at 5:12 | history | answered | Justin Cave | CC BY-SA 4.0 |