Should you ever take 100% of your phone or auto expenses as business related?Normally I don’t like to take 100% of these items as the government has a history of looking at these items much more frequently than when only 75% – 90% of usage is for business. However, if you have a separate cell phone for business use only (you have a personal cell phone too) or you have a special car you park at your office and only drive for business, then by all means let’s take 100%. These situations have to be looked at on a case by case basis. If you dirve that car home every day from work, then 95% would be more appropriate than the full 100% and could reduce scruntiny by the government. This is why tax preparation is an art, not a science (and I am an artist, not a mad scientist – most artists are sort of crazy anyway.)
Brian’s General Musings
Hey everyone:Last night Dorothy, Kirsten and I went to the Sugarland concert at the Greek. I am not the greatest country music fan of all time, but since the devide from country to rock to pop has been fading over the years I am more willing to accept the general concept and the concert was great (hey The Eagles aren’t that different and I loved the concert we went to 4 years ago at Staples). Anyway we had a great time.
Brian’s Tax Musings
I guess I will talk about business gifts again. This is always a hot topic and a few acquaintances were asking the other day.You can only deduct $25 for business gifts per year per giftee; if you have a separate business relationship with both husband and wife, you can gift them each $25.You are probably wondering why such a low amount. Well, the law hasn’t changed since 1962, when a car cost $2000 and gas was around 30 cents a gallon. Our friends in Washington have dropped the ball again.Keep your gifts small (gift cards work well for a single gift each year). If you have to send a more expensive gift, keep the $25 limit in mind and figure the rest is just business goodwill – nondeductible of course.