Can date night serve as a legitimate business expense? In our experience: yes, but only under very specific protocol. If you want to write off a date night on your taxes, you must be organized and able to prove how a date night benefited your business.
On today’s show, Natali and I are sitting down to discuss how to write off your date nights on your taxes. We’ll explain how to determine if an expense is legitimate, as well as how to prove it to the IRS. We’ll also share specific tools and tips you can use to document your expenses. Don’t miss this episode of Investing in Real Estate!
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To be crystal clear, this strategy is not about pulling one over on the IRS. We do not use our business income for personal expenses. However, we do benefit from the ownership of our business by funneling legitimate and appropriate expenses through the business.
When you and your spouse are partners in an incorporated business, certain expenses are to be expected. And the IRS allows you to subtract your business expenses from your business income in order to be taxed on fewer dollars.
So it makes sense for a business to have as many expenses as possible, in order to lower overall taxation. Certain expenses are needed to run a business. Think internet connection, cell phones, insurance, gas on a business trip. Business meetings can also be necessary to the health of the business.
And that’s how we occasionally qualify our date nights as business expenses. These meetings do serve a purpose, and you have to be able to prove it, should the IRS ask at tax time. It’s imperative that you keep your receipts from these meetings, a copy of an agenda to prove what business topics were discussed.
On today’s show, we’ll discuss in depth how to qualify an expense as a business purchase. We’ll also share what kinds of expenses are absolutely not legitimate business expenses. Please join us for episode 109 of Investing in Real Estate!
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- What types of purchases can and cannot qualify as a business expense?
- Can you take cash out of an ATM for a business purpose?
- How can you differentiate business mileage from personal mileage?
- How do you avoid comingling?
- And much more!
EP019: How to Pay Less in Taxes – Interview with Tom Wheelwright
EP010: How to Set up Profit First for Real Estate Investing – Interview with Mike Michalowicz
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