The Business Presentation Expense

By February 23, 2018 Taxes

A Strategy You’ll Want to Use Right Away – The Business Presentation Expense

So at this point you’ve probably heard at least some of the tax law changes with this big TAX REFORM.

And if you’ve read what we put out in our community you’ve heard all the big changes that apply to you in your situation. I know reading up on “taxes” is nothing too exciting, but learning the strategies and how you can keep more money legally IS EXCITING.

There has come to light an interesting deduction that I know you’ll enjoy hearing about.

It’s a way to pay less tax this year even with some of the new tax regulations.

Now to briefly recap one of the biggest changes that will definitely impact you negatively, let’s talk “Meals & Entertainment” deduction changes.

And I try my hardest to steer clear from technical jargon.

I want to make this tax stuff as clear for you as possible so you can make actionable changes in your business and personal situations.

The Meals & Entertainment has basically gone through a fine tooth comb and not many things you do now will stand with the new changes.

I’m not getting into the details but you can learn more about it by clicking here.

I know, it’s crappy.

A lot of you probably used this deduction as a way of generating business.

And now you can’t.

Since it really sucks for you not to be able to deduct a lot of meals & entertainment that you used to be able to with business purpose, your Incite friends have found a solution!

Let me introduce you to the Presentation Expense.

Although the Business Entertainment deduction and Business Meals got taken to church this deduction still survived.

And that’s great news because I can explain what you need to do to claim this in your business this year.

Here’s the breakdown.

Meals during a business presentation are still fully deductible.

And to solidify how great this is, they are 100% deductible instead of the 50% limitation.

But how do we make this legitimate for you and your business?

Easy, we follow the qualification associated with the expense.

The qualifications

  • The presentation can’t be given to people you are related to

  • It has to be given to a “group”

To really make this legitimate there are a couple other factors you should be doing.

Additional Factor – Document

First, a reminder that your best defense in all of your deductions is documentation.

Document everything you do. Documentation tells the story and makes things audit proof.

What should you document?

I would always make a list of the people that were there.

I would always have some type of slide show or presentation available to show something. Whether that is on your phone, iPad, laptop, an online video, or a handout. Have something you can show.

Additional Factor – Advertise it as a Business Presentation

Let’s give an acceptable example to augment this.

Let’s say you wanted to take a few prospective clients out to lunch to hopefully gain their business. Instead of setting up a lunch to chat, the best way to make this happen on the tax end of the stick is advertise it as a presentation.

Saying something like, “Let’s meet at Buffalo Wild Wings so I can give a brief presentation on what services I provide.”

And that email would also be apart of your documentation.

You’re advertising a presentation, not talking them out to lunch.

Additional Factor – Place Conducive for Business

Now if you’re reading this far into this post, I’m sure your mind is racing on different situations you might have and where those would be taking place.

Here’s another example to run through that would not fly as a reasonable presentation deduction.

Let’s say I want to take more than 1 other person to a Utah Jazz basketball game tonight.

The purpose of which is to treat a client for sending a bunch of referrals to you. The reason this wouldn’t go over well as a presentation deduction is because the atmosphere in which you would be “presenting” is not really suitable to conduct business.

When Donovan Mitchell gets an alley oop and throws it down in the 3rd quarter, that’s not really a place where a presentation could honestly take place.

BUT watching him throw it down would still be sweet!

If you set up a presentation meal before or after the game then yes, that could work, but the tickets would not be deductible under the presentation expense.

Your Record Keeping

In your accounting I wanted to make sure you track it correctly.

This should be categorized as “Business Presentations” in your software, spreadsheet, or receipts.

And keep track of these because if you do it right and follow these steps this will add up and you’ll save a lot more tax this year.

Whereas if you didn’t know this strategy (like the majority of taxpayers out there) then you’d either be claiming things wrong under Meals & Entertainment which will create a bigger red flag for you or miss out on deductions you qualify for.

BOOM

Again, Incite is not your traditional tax & accounting firm. We do much more for our clients and community then just do their taxes.

We’re here to help you save a lot more of your money!

P.S.

If you’re new to this Incite Tax community…

…and would like a professional IRS Hater to review your situation at no cost to you…

Then click here to sign up for a FREE Tax Strategy Session to show you where you can be saving on your taxes specifically.

 

 

6 Comments

  • david babcock says:

    can we use this presentation for existing patients, or better yet, for employees? we are frequently spending time out of the office for CE and training and reviewing systems etc

    • Ryan Vaughn says:

      David, for employees you can still count it as Meals & Entertainment. For your patients, for it to count, you have to have more than 1 present to make it work under this Presentation expense. Thanks for the question!

  • Dan Adams says:

    Thanks for this tip. It makes it a bit more difficult, but the rewards are great!
    BTW, I very much appreciated your 5 part explination of the new tax laws. It helps a bunch!
    Dan

  • Joyce says:

    John and Team Incite, you guys ROCK! Thank you for finding us the savings and above all, for taking the time to educate us!

  • LaDarrell says:

    Thank you guys for always looking out for us!

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