Outside deductions at the B&B

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10/07/2008

If you are hosting weddings/elopements on your grounds is this now something you can declare on taxes, ie if you hired a landscaper and did some major reno's outside?

We have always been told we live here so outside work is not claimable, but what about when you host outside events?

Thnx.

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egoodell's picture
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06/01/2008

I have been told no outside deductions, but if you for instance purchase potted plants and flowers for decor for a wedding that can be deducted. But who's to say you don't go ahead and plant the potted plant afterwards???

Riki

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TheBeachHouse's picture
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06/24/2013

We deducted all landscaping.  It's part of the inn.

For general bills like oil and water, we deduct 2/3. 

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01/12/2013

I have always deducted anything I do to the inn, if it does not involve my personal quarters.  The accountant has never questioned it.  You are expensing it for the business, so why would it NOT be deductible? 

gillumhouse's picture
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05/22/2008

At one Small Business Conference I attended, the keynote was an all-day session re taxes. The speaker said - #1 - never have your taxes done by a CPA because they will be covering their butts re "red flags" deductions. The speaker said, take the deduction, if it flies for 10 years - yea! If in year 11 they say, no this does not qualify you say, "Oh, I will not take it again", but you got 10 years out of it!

The first year I used my magician, she went over the taxes from the previous 2 years (done by a CPA) and got me back another $600. I had my property listed at the Assessor's office as 2/3 commercial and although I pay the highest rate possible on real estate taxes, 2/3 of my utilities and other expenses that are "common" are deductible. I gain in the long run.

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Joined:
05/22/2008

Because in most instances, you live in the B & B. So not everything is a deduction. We could never deduct the kitchen because it is our personal kitchen even though we used it the most for breakfast. I think we got a percentage but nothing was ever full price deduction according to our CPA.

Tom
Tom's picture
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10/11/2009

The general test is exclusivity.  If it is clearly a guest use only facility, you could make the argument that it is deductible, particularly if you can draw a map of your property showing how confined and set-aside the venue is.  For most exterior work you can't draw that line.  We built a bocce court for guests to use, but we play too, so no deduction.  Outdoor lighting to illuminate our sign, deduction.  Driveway lighting, no deduction. 

Arks's picture
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05/22/2010

Isn't this where someone smarter than me comes in and explains that you sell the business to an LLC that you control, then they pay you a salary and other compensation (lodging) to run the place for them. That makes everything business expenses and deductible.

I don't know about such things, but it always seems like people who DO know how, can figure out a way to do it.

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Breakfast Diva's picture
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05/26/2009

Arks wrote:

Isn't this where someone smarter than me comes in and explains that you sell the business to an LLC that you control, then they pay you a salary and other compensation (lodging) to run the place for them. That makes everything business expenses and deductible.

I don't know about such things, but it always seems like people who DO know how, can figure out a way to do it.

That's basically what we do, except we're an s corp. We lease the business to the corp and collect a salary. We've always deducted our outdoor expenses. I figure even if we get audited and they don't allow it, it's not that much we'd have to reimburse them for. They won't penalize you, just make you pay the difference.

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Joined:
05/22/2008

Since this is still part of your residence, I would think you could not claim it. But I would check with your accountant to see if some partial claim could be made because of the "wedding venue" Seems to me it would be feasible and legit.

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