Listen: Kevin, IRS, Denny discussed on Journey to $100 Million
"Meals as a business expense. When I heard this. I thought oh, and the reason is we do that a lot as far as taking our employees and taking people out for lunch and for meals built into our culture, and literally in the employee policies is that we take employees out once every two weeks for what we call a company launch. Which is just a fantastic outing for us. We'll do other things like we'll go on actual outings, like escape rooms and obstacle courses where we eat. And then we do something else we go out to lunch all the time at hawk style. Actually, Kevin every single week we go to Denny's. So we have a partners meeting where we spend. An hour together talking about the business and our goals and everything else, and we synchronize our thoughts with one another. And we do that over lunch. And we do a Denny's all of these things all of these meals that we purchase they're all on the the business card. So we treat them as a business expense. So when I heard that you cannot write it off anymore. I thought we'll do this is not good. Like what if if we can't even write it off because our says that is not a business expense? Maybe we're doing something wrong. If this isn't a magician business expense than maybe all of these meals need to go. Bye bye. What I did is. I had Kacha research it, and she found several passages that said, no that's not actually true entertainment is no longer allowed by the IRS as a deductible tax expense, but meals are meals or fine. Now when there's a meal in conjunction with the entertainment like as an example, if you were to rent out a room for your holiday party, and you had food there that food now because it's really part of the entertainment is not deductible. So if you have the meal, separate, let's go to dinner or a restaurant beforehand for dinner, then that would be deductible. But when you go to tell to party deaths, knotted optimal. Now, I'm not an accountant, this is just I researched and what we found on the IRS website. So this is what we're going by. I could be totally wrong. But I don't think so 'cause I've actually seen the information that Caccia pass to me as far as the IRS says, but it was a relief. We spent a lot of money on meals. Well, I mean, I say a lot of money, but it doesn't add up to that much. Kevin I every single week thirty bucks times roughly fifty weeks fifteen hundred dollars a year for company lunch. We do it every two weeks. So that's what twenty six times called twenty five times a year. And it costs us at most a hundred bucks says twenty five hundred dollars. So between the two what do we have to? I don't know three or four thousand dollars. So it seems like a lot because we do it frequently. But it really does it add up to that much money. I mean, we're bringing in one point five million dollars a year right now three thousand four thousand five thousand dollars over the course of entire year, and especially compared to all the value that brings it's worth breaking bread with our staff, and for me and Kevin to synchronize that alone is worth it. Even if it's not a tax deductible, but it is. Thank you for listening. I hope you heard something you"