Business Deductions

[SensibleandHourly]

I have a client who is an insurance agent who also rides/shows horses. She purchased a horse trailer with her insurance logo on it and wants to deduct the cost of the trailer as advertising even though she uses it for her personal riding and shows. 

I'm confused between business and personal and hoping someone may have had a similar situation.

This client also has a spouse who is an attorney and she would like to write off their dinners out because they often talk business. 

Still confused between business and personal lol. 

Looking forward to the collective knowledge of the community. 

Dawn 

[sjrcpa]

No and No. Both are personal expenses.

[IRonMaN]

Using your client's logic, I am evidently missing a lot of deductions.  Since IronWoman is also a CPA, I should be able to write off pretty much everything we purchase since we talk business outside of the office.  Tell you client "thanks" for showing me the light. 🤔

[TaxGuyBill]

Your first scenario is similar to this statement in Publication 463:

Advertising display on car

Putting display material that advertises your business on your car doesn’t change the use of your car from personal use to business use. If you use this car for commuting or other personal uses, you still can’t deduct your expenses for those uses.

https://www.irs.gov/publications/p463#en_US_2024_publink100033921

For the second scenario, is the spouse an employee, contractor or co-owner?  If not, then no.  If yes ... there MIGHT be occasions when it is deductible, but those would likely be infrequent.

[Frustrated-in-IL]

IRonMaN wrote:

Using your client's logic, I am evidently missing a lot of deductions.  Since IronWoman is also a CPA, I should be able to write off pretty much everything we purchase since we talk business outside of the office.  Tell you client "thanks" for showing me the light.  🤔

I agree no deductions.  

What I really want to know is why IronWoman doesn't post?  She must be a Saint!

[IRonMaN]

She knows that I have gone to the principal’s office a time or two so she doesn’t want to see or know anything about what I post here 😬

[Accountant-Man]

Many, many moons ago, my boss' client was audited by the IRS. Client was a doctor, and he took out his wife, Dr. & Mrs. Smith, with his lawyer and lawyer's wife, Mr. & Mrs. Jones, and they would discuss the medical business. All legit.

What the auditor didn't know was that Mrs. Jones was the doctor's daughter.

[taxiowa]

I do take off my internet because I come on this forum to listen and learn from you yahoos!

[sjrcpa]

@taxiowa Am I remembering correctly that you work with your son?

How many family business lunches do you deduct? laugh🤣

[qbteachmt]

"and wants to deduct the cost of the trailer as advertising"

I love this and ran into it all the time in the classroom. My answer was, "Yes, the SIGN is deductible as business expense."

The function of the trailer has nothing to do with insurance. It's not business related unless the horse activities are treated as business, and then it's an Asset.

"and she would like to write off "

Yes, of course she would like to. The attorney might like to, as well. Why not both? Ha ha ha.

[BobKamman]

Some people are so pro-IRS and quick to oppose everything.  I don't see any problem with deducting the cost of the magnetic/vinyl sign that goes on the horse trailer.  

And of course they can't deduct the cost of dining out.  But I thought that "No Tax on Tips" means that the gratuities are deductible.