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Potential client comes to me: I’m trying to figure out how to form a business to write off all
my grocery expenses as an employee benefit expense. The expenses would grow to include
any cleaning and hygiene expenses and pet care.
One of my associates indicated, if the business was a dairy farmer, could w/off the grocery expenses?
IMO, if ER,
1. Grocery Expenses would not be an EE benefit exp, nor considered ordinary and necessary for the business.
2. Any cleaning or hygiene not deductible, assume personal.
3. Pet care, ND, unless perhaps considered guard dog for farm.
Your thoughts?
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Business write offs need to be for ordinary and necessary business expenses.
I'm not sure how a dairy farmer could write off his personal groceries and such.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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I agree Lisa, how are personal groceries considered ordinary and necessary business expenses?
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@dude7707 wrote:
I agree Lisa, how are personal groceries considered ordinary and necessary business expenses?
They aren't. I dont know what a capstone project is or what youre really looking for with this thread.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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I suggest you start by reading the US tax code. We are here to help professional preparers, not to answer your other than tax business research questions.
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One of my associates indicated, if the business was a dairy farmer, could w/off the grocery expenses?
If that were true, wouldn't we all be dairy farmers...... and if that is true, I need to amend some tax returns.
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A "capstone" project is like a final exam.
First, you don't even have an employee unless there is a corporation and there is payroll.
Second, understanding what is the business entity and the business operations is required before anything you asked can be answered.
"Your thoughts?"
You cannot shift personal life costs to business. Only the business activities are business. Your "friend" is trying a scam concept. This tells us the truth: "how to form a business to write off all"
A business is not formed to write off but to make something. Having a life is not a tax deduction.
All of this is Basic IRS guidance. You need to do some reading.
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