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Fooding bill format for Personnel

oh what's up tax savers welcome back to taxes made simple i wanted to let you guys know that in today's video we're gonna do a little bit something different i'm gonna take you guys to lunch with me yeah that's right i'm gonna go out to lunch with one of my business clients one of my friends and i want to be able to show you guys how i'm able to write off a business meal lunch and taxpayer i want to be able to explain it to you so you know exactly how you can take a business meal right off legitimately i have a lot of taxpayers who are afraid to take the business meal deduction and i have taxpayers who end up getting audited down the road who didn't take the business meal deduction the right way i personally think that we can debunk both of these two situations if we know how to properly take the business meal deduction so if you follow with me to lunch we're gonna eat some good food we're here in orange county california today in the city of costa mesa and we're going to meet up with my buddy charlie chang a youtuber in the financial space who has grown his youtube to over 600 000 subscribers we're gonna eat talk business i'm gonna tell you guys something about this i'm gonna make sure that i document this the right way so you can document your meals the right way without fear of the irs let's dive in now before i leave to head to this meal i want to let you guys know a little bit something about documentation when it comes to meal deduction when you're taking a meal deduction and you're considering the irs's position of you taking a meal deduction if you're ever audited the irs would want to know a little bit more about why you took that meal deduction so what i've done is i've already messaged the business client my friend charlie chang exactly what we're going to be discussing today in a text message in addition to doing that and i just took it a step further i set up a reservation on a mobile app called opentable and what it allowed me to do is it allowed me to choose what type of meal occasion i'm choosing i can set the meal for anniversary for date or i can set it for businessmen and that's exactly what i did so on the application i have a reservation over at a restaurant called habana that you guys are going to get to see in here in a moment and then i also took the time to make sure that i told charlie exactly what we will be discussing today which is talking about setting up a new corporation for this new program that he dropped on personal branding you guys are someone who thinks that personal branding is important that you might want to check out the course but we're going to go talk about that over lunch today and whether or not it makes sense for him to set up a new corporation so let's go [Music] cheers [Music] now i don't know if you guys have ever had cuban food but if you're looking for a great cuban food spot you're gonna love this spot it's called habana tabana [Music] and order the empanadas okay let me put the uh not as in for you then i'll give you a few minutes to look over drinks or any other episodes okay cool we are at habana full of life here as you can see this is a restaurant that has a lot of culture if you look around you'll notice that there's like lights draping old school type of lights you can feel the latin vibe with the music that's playing and the food that they serve is like homey food native to their culture so i love this place it's normally open late too they serve really good rum i got a steak it's called the alexa rosco 38 i only got this because he's paying for it that's right one of the biggest tips that i can give you is that when you're going out for meals you have to make sure that you're paying for everyone that's having a business meal with you that's probably the biggest mistake that business owners make they want to pay for themselves or split the bill it doesn't work when you're business owners you need to make sure that you're paying for the person that you're wishing to do business with and you need to make sure that you're eating the plant let's get these plantains [Music] what if there's like a two thousand dollar meal one person for everything yeah is that like a rule if you're only paying for yourself then it's not technically a business meal is it i mean we're talking with other people yeah but the business has to absorb business has to absorb the expense in order for you to expense it so if the business is only absorbing your personal meal then technically you can go out to eat and only pay for yourself every time you go out to eat an irs would have a hard time justifying why you get to spend meals out every single day and only cover yourself what if some of those meals aren't business related right that's why it's important to have a receipt that's why it's important to have the receipt because the receipt lets you know how many transactions were happening on that meal but more importantly on the back of the receipt you need to document who you ate with anytime you have a transaction over 75 dollars so it's one of those golden rules that the irs created expenses over 75 you have to keep the receipt if it's a meal expense you have to write on the back of the receipt who you're with and what was discussed [Music] all right guys most important thing about taking a meal deduction there's five important rules to taking a meal deduction number one the location the location is written here for us but it's also written here we're eating at habana at the lab the irs ever wants to know where i ate at their first gonna look at the location the second thing that you're gonna look at number two is the money spent this typically is shown what you spend your money on on most receipts you'll be able to see the items but that is going to be the second thing that they're going to look at so we went through number one we went through number two number two is the amount that i spent and what i spent my money on number three is the time what time was i eating the date and the time should always be on every single receipt number four who did i eat with charlie chang and number five what was discussed we discussed entity creation for a new business venture cool i have the five points covered i have where i ate at i have how much i spent and what i spent my money on i have the time in which i ate number four i have who i ate with and number five i have what was discussed which are the five key points to taking any business meal deduction now what we're gonna do right after this meal is we're gonna recap exactly what needs to happen so that you never fall out of compliance even though you've documented everything correctly i'm opening up quickbooks app right now so i can take a screenshot of this receipt you might be asking carlton why are you taking a photo of your scene aren't you supposed to keep a copy of the receipt i am keeping a copy of my receipt i'm choosing to keep a digital copy of my receipt in the event something happens god forbid a hurricane a blizzard all my tax documents could be swooped up and i never want to get into position taxpayer i never want you to get into a position where your documents aren't saved in the cloud we are living in 2022 now which makes it's important to make sure that you're docking your expenses in the cloud that it's on a server quickbooks is a great place for you to go ahead and take a copy of your receipt log all your transactions make sure that you don't have to keep the physical copy with you well simple and just like that i secured the meal deduction let's go recap i am stuffed that was a great meal if you guys ever come down to orange county habana is the location for some amazing cuban food you guys saw we documented a lot of things today but i want to recap for you so you know exactly what to make sure that you need to do to get this meal deduction first things first make sure that you're setting up the scene before we even left i made sure that i had a text message with charlie documenting exactly why we're even coming out to eat today the most important thing is that we're actually taking a business meal you can't just show up someplace and decide to write something off the second thing that i did is i made sure that i paid for the business meal it was my intention to have the business meeting so i made sure i covered the bill and then i documented that correctly if you're going out to eat with somebody choosing to pay for yourself won't count as a business meal deduction the third thing that we did is we made sure that on the back of the receipt that we wrote down who we ate with what was discussed when we learned those five important key factors to keeping a business receipt and most importantly you guys saw a little trick that you can implement is taking pictures of your receipts instead of always having the physical copy that's correct there's no irs rule that says that you can't have a digital copy of your receipt as opposed to a physical copy of your receipt now if you're looking to become savvy as a taxpayer you know what to do hit the subscribe button hit the like button i'll see you on the next video over now hello sir hey man listen all of them horses that you have need to take their way back to the stable because this street belongs to me and my pony all right it's porsche's in the back all right you've heard the song [Music] you