| This week, I've been inundated with clients asking | | | | required for you to conduct business, it is deductible. |
| about Gray Area Tax Deductions. What? | | | | For instance, the coffee grinder - while it probably isn't |
| It appears my local competitor has determined that | | | | necessary for my business to have a coffee grinder, I |
| certain business deductions are "gray area" and won't | | | | personally don't drink much coffee (rarely if ever, if I |
| risk a red flag from IRS to take the deductions. And I'm | | | | don't have clients). My clients often bring gifts of |
| still sitting back asking myself what-the-heck? | | | | coffee beans, in small packets, as a Thank You for |
| If you need to make a purchase for your business, it's | | | | my services (I'm not sure where the custom came |
| an authentic need, you purchased the item, you are | | | | from, but it's sweet). When they come for more |
| using the item, and you have a receipt - how is it a | | | | services, I take a handful of coffee beans, grind them |
| "gray area deduction"? | | | | up, make a pot of coffee, and serve it while we do |
| Some of these so called, gray area deductions were | | | | their business. It isn't a big thing, and I could probably live |
| listed as: | | | | without the deduction, but it is a business expense. |
| - Calculators (because the client has a computer) | | | | My tax client who asked about her coffee grinder, |
| - Daytimer (because the client could use the computer) | | | | operates a very small, but lucrative Bed and Breakfast |
| - Coffee Grinder (ground coffee is cheaper) | | | | in my hometown. Of course she serves fresh ground |
| - Television (used for training videos in the office - | | | | coffee to high end visitors in her Bed and Breakfast, |
| considered 'entertainment') | | | | so of course, the coffee grinder is deductible. Ground |
| - Business Cards (because client changed addresses | | | | coffee may indeed be cheaper, but since when did |
| and needed to replace them) | | | | IRS have a bounty on high end expenditures? IF that |
| - Communications Networks (because they're | | | | were the case, would there not be more Executives |
| 'excessive') | | | | traveling coach? |
| - Digital Cameras (because they can be used for | | | | Next time you need a piece of equipment and you |
| personal use) | | | | have good reason to purchase it for business, |
| If the item on your list is used for your business, and is | | | | remember... It's Deductible! |