Tax Tips: Meals and Miles

Tax time can be confusing, especially when it comes to figuring out what counts as a business expense. Two experts from Wisconsin, Rick Kutch and Mark Leeder, share some key points to help business owners stay on track. First, let's talk about meals. Many people think any meal eaten during work hours can be written off. But that's not the case. The IRS has specific rules. For a meal to be deductible, it must involve a client, colleague, or have a clear business purpose. Just eating lunch at your desk doesn't count. Keeping good records is crucial. You need to note the date, location, who was there, and why it was a business meal. Without these details, the IRS might not accept your deduction. Next, let's discuss vehicle expenses. Many business owners assume any trip made for work qualifies. But only miles driven for specific business tasks count. Commuting to and from work doesn't make the cut. Trips to meet clients or run business errands do. Keeping a mileage log is essential. It should include where you went, when, and why. This log helps prove your expenses if the IRS ever questions them.Good recordkeeping isn't just about avoiding trouble. It also shows that you're serious about your business. When you keep detailed records, you're less likely to face penalties or disputes. Plus, it makes tax season much easier. Rick and Mark advise business owners to stay organized all year round. Don't wait until tax season to gather receipts and logs. Save meal receipts and note the business context. Update your mileage log regularly. This way, you'll have all the information you need when it's time to file your taxes. Remember, the IRS looks at the evidence, not just the type of expense. Even legitimate expenses can be rejected if you can't prove them. So, start good habits early. It'll save you time, stress, and maybe even some money in the long run.