Margaret CPA in OH

Heartiest congratulations to you both! I'm sure we are all glad to be able to assist with this most happy occasion as you have so generously assisted us and Brandy has been so willing to go along, too. I would ask to tell us all about the great evening but maybe just the dinner. Enjoy yourselves!

Thanks again, Jainen, for pointing out the less obvious (to me, anyway). I, too, interpreted the question to mean deductible for tax purposes. I honestly did not believe that someone on this board would ask about a non-tax deduction. I really should know better and am glad that you do. Thanks, again.

The charitable angle might work but keep in mind that deductible contributions are limited to 10% of the C corporation's taxable income. And, as Ron pointed out, the contribution cannot be designated to benefit any specific individual.

No research here but I can't imagine that the expense would qualify as "ordinary and necessary," the criteria for a deductible business expense. I also wonder if the payment would have to be considered as compensation to the employee. Hmmm, good question, Bart, and I am interested in other input.

Good luck to you, Terry. I do hope you keep us informed as to the progress. I guess I am too old and cautious to undertake such a task but wish you well in this one. Using the tactics as noted should not hurt you in any way - cash up front is a really good way to begin!

:bday: and many more!

Well, they didn't only pay with pizza. They gave each a small stipend, a few hundred dollars, none over $300. This is a family effort, like many family efforts. The main remodeling work was done by the oldest son, a self-employed, licensed contractor, about 30 years old. These folks also provide, as a family effort, dinner for about 40 people each month at the Tender Mercies homeless mission, among many other contributions. They are very generous.

Thanks for the replies. I think it unfortunate that they will be depreciating these expenses over 27 1/2 years while paying the 9% interest on the LOC but did they ask me anything ahead of time? I don't believe they fetched beer, though. There were multiple trips to Lowe's and Home Depot for drywall, paint, etc. Besides, these folks keep a pretty close eye on the 'kids.' They are all adopted and minorities from abusive situations. The parents are a physician and nurse couple with the biggest, most generous hearts I know.

:bday: and many more!

This was on another listserv. I am one of the 60% that did not know this and am glad that I have not yet disposed of any copier or scanner. http://www.cbsnews.com/video/watch/?id=6412572n&tag=contentMain

Client with one rental in an LLC, bought a second with 50% from their funds and 50% from LOC from first property (ugh! the interest tracing won't be pretty). The 'new' property was a foreclosure. They put their several teenagers to work fixing it up (two are into construction stuff). Among the expenses are several pizzas, Rally and McDonald burgers and some gas money, probably to go fetch materials. Since these were charged to the LLC credit card and even the LOC (yikes!), any suggestions on how to account for them? My inclination is Loan to Members or deductions against the significant loan from the members. Other ideas? These expenses total $300 ish. Then the interest to carry these? I think this is the last year I want to deal with them but I've got them now! Thanks-and I used to like extended returns.

Here's another voice agreeing with the "Get out now" crowd. There is no way you can come out even let alone ahead with this situation. Listen to Catherine - she just dealt with a losing proposition wisely recently and, I'm sure, is sleeping ever more peacefully. And I don't think a brick was involved but her wisdom is clear.

Okay, I started it with a modest amount. I think it should be left open until you have sufficient funds to have a great time with your significant other. C'mon, folks, let's show a little love here!

Eric has provided a couple of links (see the Live Chat discussion) to places he would really enjoy when we gather the means to express our gratitude to him, not just pay the bills. I'm not sure how we do this other than add another contribution on the link above but is it possible to indicate that it's for dinner? Do we gather funds outside and send a gift card? Eric, you can chime in here to make it easier for us - it isn't as if it's a surprise!

I want one of those, too! How adorable...

I haven't looked at this form but many of my clients have business in multiple taxing municipalities. They all use the 3 or 4 items in a ratio to determine liability (if any). The elements are usually gross receipts, rents (of office or building, not a car or travel facilities, I think), assets at cost and wages in columns of all and this locality. The percentage of each element to the whole is added up for a total percentage (usually 0% for assets in the locality) and multiplied by the net income or loss for the whole. There is no allocation of expenses. So I think Jainen is saying the same thing. You can't determine on the individual locality whether or not there was a loss but multiply by the ratio.

Thanks for the memories!

:bday: and many more!

I agree on the special donation for Eric. For long timers, the precedent was set with the barbecue dinner sent to the great folks up in Maine. I don't recall who was the kind soul to organize it, collect the money and make all the arrangements, but it was such a treat when they posted the picture of the entire staff enjoying the thank you from so many of us grateful recipients of their excellent tech support and customer service - just like that which Eric provides! So Eric, white or red? Beef or fish? Casual or formal? Start thinking about - I suspect a wave of support will come rolling in soon!

Hmmm, interesting idea. Would the text be kept for reference as the comments now are? That is, sometimes it's useful to look up prior postings. It would be a shame to have a lively and informative 'chat' accessible only to those online at that time, I think. Thanks, Eric, for always looking out for ways to improve this incredibly valuable service that you provide for us to share. You are just awesome!

:bday: and many more!

Absolutely great! Many needed smiles were generated here, Catherine.

:bday: and many more!

:bday: and many more!

I just caught up with some of the flooding news and hope all on this board that may be affected are safe. We often comment about the snow storms in winter but this is just as bad. Take care all!