How to Deduct Home Entertainment Expenses

Julian Block for AccountingWeb writes: It's common knowledge that there's a cap on deductions for business meals and entertainment: Winers and diners get to deduct only 50 percent of their expenses. But it can be a little unclear about what is and is not included in the 50 percent category. For example, besides meal and entertainment charges, expenses subject to the ceiling include meal- or entertainment-related taxes and tips, cover charges for night club admissions, room rentals for dinners or cocktail parties and parking at sports arenas.

However, transportation to and from business meals, such as cab fares to restaurants or theaters, is not subject to the limit.

For instance, the charge for a business meal comes to $100, comprising $80 for food and beverages, $6 for sales taxes and $14 for tips. The limit on the deduction is $50, half of $100. However, cab fare to the restaurant of $10, including tip, is 100 percent deductible.

But what about using your home to entertain clients, customers, or other business associates? That's permissible, but whether you have at-home gatherings to keep clients or woo new ones, you should be up to date on stringent rules for business-entertainment deductions.

Like other kinds of meals and entertaining, home entertaining has to satisfy either of two requirements: It must be "directly related" or "associated with" the active conduct of business; and there has to be a substantial and bona fide business discussion directly before, during, or after the dining or entertaining. However, IRS regulations make an important exception when you're host to business guests from out of town: They allow you to deduct entertaining that takes place the day before or after the business discussion.

Even though the event takes place in your home, you don't have to limit your write-offs to modest home-cooked meals for yourself and your business guests. It's still possible to host catered affairs at your home before or after business discussions, invite a few friends, and deduct 50 percent of your qualifying expenditures.  [snip].  The article continues @ AccountingWeb.com, click here to continue reading.

About the author:
Julian Block writes and practices law in Larchmont, New York, and was formerly with the IRS as a special agent (criminal investigator) and an attorney. More on this topic is available from " Julian Block's Year Round Tax Strategies," available for Kindle at Amazon.com and as a print copy at julianblocktaxexpert.com.

QuickBooks and the Power of Going Mobile

 IT Center for IT Peer Network writes: For professionals in need of accounting software on a daily basis, QuickBooks has long been the go-to program. Remote access capabilities, remote payroll assistance and outsourcing, electronic payment functions, online banking and reconciliation, mapping features and marketing options through Google, and improved e-mail functionality through Microsoft Outlook and Outlook Express. No wonder why it’s so popular.

But have you taken the time to truly consider the power of QuickBooks in the hands of your mobile employees? Though the possibilities inherent in the software seem virtually limitless, the capabilities of certain mobile devices dictate the QuickBooks experience. Be thorough in your research of available devices and wary of the needs of your mobile workforce. Your employees will thank you, and so will your bottom line.

-ITPN Admin

You are probably used to QuickBooks while at your desk, but how do you perform crucial QuickBooks tasks on the go? Businesses that provide personalized anytime, anywhere service can quickly distinguish themselves—and QuickBooks can help you do that. Tasks such as generating reports and creating estimates are critical for mobile employee productivity, and while mobile apps for iPads and Android tablets can provide basic functionality, why settle for basic when you don’t have to?

It’s crucial to understand the reach and limitations of QuickBooks on mobile devices because some devices might support your mobile employees’ needs better than others. Because of this, Intel commissioned Prowess Consulting to put multiple devices running QuickBooks to the test, and the results were impressive.

Prowess Consulting evaluated QuickBooks options for mobile users and examined the software’s capabilities and user experience on a range of mobile devices. The QuickBooks user experience varies notably between different mobile device platforms. Of the devices Prowess tested—the Dell™ Venue™ 11 Pro, the Samsung® Galaxy Note® 10.1, and theApple® iPad Air™—they concluded that the mobile device best suited for productive QuickBooks use was the Dell Venue 11 Pro powered by an Intel processor and running Windows 8.1.

The tests conducted on the three devices ranged from basic mobile tasks like comprehensive reporting to standard banking, importing data to exporting data. Using the Dell Venue 11 Pro, users were able to create up to 40 times more reports and get deeper customer insight. They enjoyed four additional ways to do more with reports: Print, email, save, or export them for more productive collaboration. Customer service saw improvement with twice as many ways to access richer features, functions, and customer data. And QuickBooks data was better leveraged by exporting it as an Excel spreadsheet available for use anywhere.

Users often aren’t surprised that they have to sacrifice for the convenience of mobility on iPads and Android tablets. However, employees who perform full-sized accounting or bookkeeping workflows on a hand-sized device might come to wonder if the trade-off was worth it. Workarounds take time, customers get frustrated, and productivity is lost when employees have to wait until they can get to their device to do what it promised to do.

QuickBooks users can go mobile in a variety of ways. However, take care that your choice of mobile device does not require you to sacrifice important functionality. A tablet such as the Dell device Prowess tested, powered by Intel architecture and running Windows 8.1, makes that trade-off unnecessary in its delivery of both full functionality and mobility. Why settle when you can succeed?

For more on the Prowess QuickBooks study, head to “Do More with Intuit® QuickBooks®” to read the full text.

Are you currently using QuickBooks on a mobile device for your organization? What is the most important feature to you? Comment below or join the social conversation on Twitter using the hashtags below:

#ITCenter, #QuickBooks, #mobility