Taxes

[Suzie Q]

I'm doing my taxes and for things like food, how do you handle it? I'm saying that food related to the business, (strawberries, coffee, etc.) cost $xx. I know the guests do not consume ALL of it, so I say something like they eat 75%. Sound reasonable?
P.S. Got a $12 tip today from a mother/daughter guest. YEA!
Thanks,
C

 

[gillumhouse]

Anything I purchase to serve to guests is claimed. It was made for them whether they ate it or not. I claim all B & B food. Our food is kept separate.

 

[EmptyNest]

You had better talk to your accountant about this one. Lots of room for interpretation. You don't want to be greedy..but you don't want to throw up a red flag for IRS either.

 

[swirt]

We purcahse our food and guest food on different receipts and all of the expense of the food is counted as an expense.

 

[gillumhouse]

You had better talk to your accountant about this one. Lots of room for interpretation. You don't want to be greedy..but you don't want to throw up a red flag for IRS either..

At a business seminar, the "expert" brought in said unless it is an bright red, doubtful red flag, meaning if it could go either way - take the deduction. You may get it for 10 years before they say, wait a minute, no. He said you will have had the benefit of those 10 years of deduction.

 

[Breakfast Diva]

We purcahse our food and guest food on different receipts and all of the expense of the food is counted as an expense..

We purcahse our food and guest food on different receipts and all of the expense of the food is counted as an expense.

we do this also. We use separate credit cards and charge everything then pay it off. We get mileage points that way to help pay for our vacations.
You must keep everything separate.

 

[Morticia]

Yay on the tip!
We keep the inn food and our food separate. (I mean that in the sense of accounting, altho it is also separate in fact.) If we buy a jug of OJ for the inn and we have no other guests coming in for awhile, yes, I will drink it, otherwise I get my own. I won't let food deliberately go bad.
But, if you're not keeping things separate already, start now for next year. Altho not necessarily 'easy,' a way to do this (and drive the clerks mad) is to have your food and the inn food separate when you pay and use separate accounts.
I think it all works out. Sometimes the inn 'borrows' an egg from me and sometimes the reverse.

 

[Suzie Q]

Yay on the tip!
We keep the inn food and our food separate. (I mean that in the sense of accounting, altho it is also separate in fact.) If we buy a jug of OJ for the inn and we have no other guests coming in for awhile, yes, I will drink it, otherwise I get my own. I won't let food deliberately go bad.
But, if you're not keeping things separate already, start now for next year. Altho not necessarily 'easy,' a way to do this (and drive the clerks mad) is to have your food and the inn food separate when you pay and use separate accounts.
I think it all works out. Sometimes the inn 'borrows' an egg from me and sometimes the reverse..

Thanks, "Guys,"! I try to keep things separate. I get 3% off groceries on a certain cc, but they stopped issuing this card. No discounts on the bnb credit card, unfortunately.
On a receipt, I put a mark on things for the bnb, typical bnb food. I don't say count milk, although it does get used in some things like coffee cake. Don't count all the egg purchases.

 

[Samster]

We purcahse our food and guest food on different receipts and all of the expense of the food is counted as an expense..

Ditto here. And I've saved all the personal food receipts also in the event of an audit...not to mention restaurant receipts.