Can entertainment expenses be deductible in these cases: rock concerts if you're a manager of a rock band and have to go to concerts to evaluate the market (studying sounds, acoustics, clientele). Anything else?
Can meals be deductible in full for these cases: dog food if you're a dog walker, food for children if you're a daycare worker. Anything else?
50% 100% of these costs.
I agree it's 50% if you take a date with you. Otherwise these are "Scouting Costs" at 100%, not entertainment expenses.
The dog walker gets a Schedule C deduction. If the daycare worker is an employee of a daycarw operator, I don't see the deduction. But it is
100% for the daycare operator.Dick
wrote
Nice thought - but no.
In fact, the IRS could argue that your claims and actions are not ordinary or necessary for the buisness.
In both those cases you are, hopefully, charging your clients (the owners of the dogs and kids) a fee for those services. Both would be considered ordinary and necessary (if not required by law).
But those situations are not "meals and entertainment" as the code defines it.
What if the "date" is an acoustic engineer?
Seth
"Seth" wrote
Dates are not business related.
...
"Sounds" ok to me... :)
I think what Paul's trying to say is to never mix business with pleasure. A good maxim indeed.
ChEAr$$$$, Harlan
I disagree in part. 100% of dog food that the DOG eats. 50% that any person eats! ;-)
"Harlan Lunsford" wrote
I like the quote from the OP. "studying sounds, acoustics, clientele".
Is *checking out the chicks* a business deduction?
"D. Stussy" wrote
Gross.
For gigolos, yes.
Dick
Don't you remember the stories of older Americans in the 1980's eating pet food because all they got was Social Security and couldn't afford real food? It happened and may be happening again.
Dang.
I knew I majored in the wrong field.
"D. Stussy" wrote
........and I just thought the old folks breath smelled bad because they were old.
"I talked to some customers to learn how they found out about this show, to decide where and how I should promote mine."
Seth
"Seth" wrote
And you had to have how many beers to do that?
You could: Stand outside and take a survey of patrons entering or exiting the establishment. Call and ask the band performing that night how ~they~ marketed their show. Call and ask the venue what marketing ~they~ do to promote the show. Find out what radio stations and entertainment publications cater to your band's audience demographics in that area.
Some of that - hell - most of that can be done from your desk. And if you absolutely had to go to that venue, you didn't have to go in to the show of some other band to get what you needed to know.
If you don't know how to market/promote the bands you promote/manage, then you should let the band know you don't know how to help them.
Do you really have to go see the other band perform their entire set to get that information? Do you have to have a dozen beers to get that data? Did you have to travel that far and spend the night to glean some nuggets of information that may or may not help promote your bands show?
If audited, it's a hard sell to the auditor.
How would he evaluate the acoustics of the venue?
And you would expect them to share this valuable information with a competitor?
The venue usually gets a flat rate plus concessions. Your manager markets, the venue does not.
OK, you have one there. Now you know who will want your advertising money, but you will not know there effectiveness.
Again, how would he evaluate the acoustics of the venue?
That is somewhat harsh. Consider that college and professional scouts attend high school, college, semi=pro, and professional games to evaluate players, field conditions, etc. And that is
100% deductible - except for the beer!
As long as you are there, why leave before it is over?
The beer is a distracter. How did it get into this thread?
Who said he was traveling far and spending the night? But if he does do that, it may or may not be reasonable.
If the auditor questions it, the only way to win is to have detailed documentation of what you did and what you did with the results. Quality recordkeeping and a straight face are your best defenses against an auditor.
Dick
No beers on my expenses.
If they'll talk to me; they won't on their way in, and they're too drunk on their way out.
That says what they did, not which parts of it *worked*.
See above.
But it helped.
If you think you know everything already without any market research, I don't want to hire you for anything I care about that involves selling to the public.
They wouldn't sell me a discount ticket for half a set.
In my professional opinion, it was worth the effort.
Seth
Good enough to evaluate the acoustics from the sidewalk outside?
That means it has acoustics. There are established venues that book hundreds of bands a year whose acoustics suck.
Where can I find one of your miracle-working sound techs?
And even one who can needs the right equipment. Identifying the precisely right equipment in advance saves money.
It's not even Mozart. So what? Should a band not be able to have its music sound the way _it_ wants because _you_ don't consider it important enough?
I believe he'll pay more to rent special equipment to improve the acoustics if it's necessary, and he doesn't want to spend the money if it isn't.
But it's "after the fact" for the band playing this week, and before the fact for my band two weeks from now.
Why?
Seth
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