@LindaM wrote:
That is my understanding but we are now being told differently. Do you happen to have any tax code for me to reference in our appeal?
@2stepps wrote:
Find a CPA that does tax work all year long. Because truthfully as a business owner we should file quarterly.
@Rho* wrote:
As long as everyone is asking tax questions....................
Restaurant shop pays $75.00 if I have a tab of $58.00 or $82.00. Instructions call it 'pay' not 'reimbursement'.
Do I pay taxes on $75.00 and end up with less profit from the shop?
@JustForFun wrote:
@Rho* wrote:
As long as everyone is asking tax questions....................
Restaurant shop pays $75.00 if I have a tab of $58.00 or $82.00. Instructions call it 'pay' not 'reimbursement'.
Do I pay taxes on $75.00 and end up with less profit from the shop?
You report the flat rate as income and you deduct the dinner bill (and other expenses, like mileage and parking) as expenses. Both numbers end up on you tax return. So ultimately you pay taxes on the difference if you were paid more than you spent and get a write-off toward other income if it's the other way around.
So using your number (and assuming you had no other expenses for the excursion which probably ISN'T true) if you bill was $58, you pay taxes on $17. If it was $82, you have a loss of -$7 that can offset some other income.
@Niner wrote:
@JustForFun wrote:
@Rho* wrote:
As long as everyone is asking tax questions....................
Restaurant shop pays $75.00 if I have a tab of $58.00 or $82.00. Instructions call it 'pay' not 'reimbursement'.
Do I pay taxes on $75.00 and end up with less profit from the shop?
You report the flat rate as income and you deduct the dinner bill (and other expenses, like mileage and parking) as expenses. Both numbers end up on you tax return. So ultimately you pay taxes on the difference if you were paid more than you spent and get a write-off toward other income if it's the other way around.
So using your number (and assuming you had no other expenses for the excursion which probably ISN'T true) if you bill was $58, you pay taxes on $17. If it was $82, you have a loss of -$7 that can offset some other income.
I don't believe we can count it as a loss if we spend more than the reimbursement for the meal.
@Niner wrote:
@JustForFun wrote:
@Rho* wrote:
As long as everyone is asking tax questions....................
Restaurant shop pays $75.00 if I have a tab of $58.00 or $82.00. Instructions call it 'pay' not 'reimbursement'.
Do I pay taxes on $75.00 and end up with less profit from the shop?
You report the flat rate as income and you deduct the dinner bill (and other expenses, like mileage and parking) as expenses. Both numbers end up on you tax return. So ultimately you pay taxes on the difference if you were paid more than you spent and get a write-off toward other income if it's the other way around.
So using your number (and assuming you had no other expenses for the excursion which probably ISN'T true) if you bill was $58, you pay taxes on $17. If it was $82, you have a loss of -$7 that can offset some other income.
I don't believe we can count it as a loss if we spend more than the reimbursement for the meal.
@Jennifer39 wrote:
Did you track miles to mystery shops and back home? Did you do quarterly taxes? Just not sure how this works and you said your mileage log passed an irs audit.
@Niner wrote:
@JustForFun wrote:
@Rho* wrote:
As long as everyone is asking tax questions....................
Restaurant shop pays $75.00 if I have a tab of $58.00 or $82.00. Instructions call it 'pay' not 'reimbursement'.
Do I pay taxes on $75.00 and end up with less profit from the shop?
You report the flat rate as income and you deduct the dinner bill (and other expenses, like mileage and parking) as expenses. Both numbers end up on you tax return. So ultimately you pay taxes on the difference if you were paid more than you spent and get a write-off toward other income if it's the other way around.
So using your number (and assuming you had no other expenses for the excursion which probably ISN'T true) if you bill was $58, you pay taxes on $17. If it was $82, you have a loss of -$7 that can offset some other income.
I don't believe we can count it as a loss if we spend more than the reimbursement for the meal.
@sandyf wrote:
And my tax question since this just came up and I cannot locate in search...I messed up a shop by going on the black out date (long sad story) so I am not getting the fee or the reimbursement. Am I totally out of the expense I incurred for a required purchase or can the expense for a rejected shop be written off on taxes some way? I am just grasping straws right now as I am so mad at myself for making an assumption without checking it out first.