Year-End Tax Tip: Deducting Meals & Entertainment Expenses

Year-End Tax Tip: Deducting Meals & Entertainment Expenses

A taxpayer may deduct business-related meals and entertainment expenses incurred for entertaining a client, customer, or employee. Entertainment expenses are deductible only if they are both ordinary and necessary and meet one of the following tests: Directly-related test – The taxpayer must show all of the following: The main purpose of the combined business and entertainment is the active conduct of business The taxpayer did engage in business with the person during the entertainment period There is more than a general expectation of getting income or some other specific business benefit at some future time Associated test – Even if the taxpayer’s expenses do not meet the directly-related test, they may meet the associated test. Taxpayer must show that the entertainment is: Associated with the active conduct of the business, and Directly before or after a substantial business discussion Generally a taxpayer may deduct 50% of unreimbursed entertainment...
Dunston Financial Group Featured in MagnifyMoney.com – 7 Money Rules Freelancers Should Live By

Dunston Financial Group Featured in MagnifyMoney.com – 7 Money Rules Freelancers Should Live By

Dunston Financial Group was recently featured in a short article over at magnifymoney.com. The article is about cash flow management strategies for freelancers and people who are self-employed. The article offers up the following 7 tips: Base your budget on your lowest grossing month Set your lifestyle now Anticipate large expenditures Always plan ahead for taxes Have multiple income streams Save at least a year’s worth of expenses Make sure your money is working for you You can read the entire piece over at...
3 Easy Tips to Successfully Manage Your Business Finances

3 Easy Tips to Successfully Manage Your Business Finances

  When it comes to managing one’s business finances, having systems in place is key. Entrepreneur magazine suggests that business owners follow three simple tips: 1.) Have a separate checking account and credit card for the business. 2.) Capture receipts effectively, and consider using Shoeboxed for painless receipt scanning and management. 3.) Have a system for entering receipts. There are variety of ways to automate your expenses and receipts directly into your accounting software. Clint Haynes of Kansas City Financial Planner and President of Nextgen Wealth says, “One solution is to use an American Express credit card that will directly link up your debit or credit cards using Quicken and Expensify.” However, if you’re utilizing a spreadsheet that isn’t connected to accounts, you’ll have to manually enter receipts. If this is the case, he recommends entering them on a weekly basis rather than a monthly or quarterly one. Devote 30 minutes or so a week to take care of this. While it might seem hard at first, if you keep at it. It can become a well-oiled routine in no time. For more details on these and other tips for being a successful entrepreneur, you can read more at...