[USER]

Any LLC owners here? Just met a new CPA and he said we could write-off our annual shareholder meetings.

My friend (another entrepreneur) said my guy was a scam.

Thoughts…..

[Jim]

My tax advisors have me rent my primary residence for my LLC meetings and use the Augusta rule which allows you to rent out your primary for up to 14 days tax free.

[Rawee]

If you have the meeting in a place inconsistent with your business, like Paris, it looks sus, but for normal and reasonable business expense, many companies meet in Vegas during industry conferences and expense dinners, flights and hotel.

Based on annual revenue, you can decide what’s reasonable.

[David]

Hire that CPA. There are people, even CPAs, who live in absolute terror of running afoul of the IRS and they share that fear with anyone who will listen.

Hire a CPA who is candid with you about what’s deductible and how to do it legally.

In general, only take advice from people who are coming from a place of knowledge and not fear.

[Terri]

We hold annual trips in Mexico and it’s a business expense. Why wouldn’t it be a write off?

What would be your CPA’s gain to tell you the wrong thing? You hired the CPA to do his work. Tax strategies.

If anything, he is looking for a legal loophole to help you save money.

I have had an S-Corp since 2019. Legal loopholes are available for a reason.

That doesn’t mean it’s a scam.

[Scott]

You can write off all sorts of things, cell phones, car expenses, home office, etc etc.

be prepared to show proof if you are audited that those things were for the business.

And of course, you need to show a profit for a write off to matter.

[Daniel]

You can write it off as expenses related to that are business expenses. Where you start to get questionable advice is where your shareholder meeting is really your personal vacation to Bali.

But then again, even a shareholder meeting in Bali might be ok if you have a remote company and need somewhere for everyone to get together in person at.

Also, I’m not a cpa, just someone who’s been in business a long time.

[Rob]

Absolutely…I’m about to write off my trip to Japan…my tax consultant is brilliant and I’ve saved a boatload in taxes…

this is just a tiny bit of what you can do

[David]

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry.

A necessary expense is one that is helpful and appropriate for your trade or business.

So, if your annual shareholder meeting is just that, then sure it’s deductible.

If you are trying to claim a week long family vacation as a shareholder meeting or something like that then obviously that could be heavily scrutinized.

Also consider the type meeting needed to conduct your business.

Bigger company, more going on, more topics, more votes, more shareholders, etc… vs an llc with a couple members that is holding a few rentals, running a small online shop, etc, doesn’t really require a huge production of an annual meeting.

[Anthon]

Yes, you can. If applicable, employ your spouse and kids and the whole family can have a tax deductible board meeting in a nice location

[Author]

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