Tax Write Offs

[wildforager]

What is the name of your state (only U.S. law)? Virginia

Hello,
I just started my own business and have a few questions. The business is a health/nutrition/wellness related practice and I will be offering healthy cooking, and raw food proparation seminars/workshops.

My first question is the following:
Since the material I will be offering requires me to purchase food, and experiment with food at home, will the food count as an actual deduction on my taxes?

Also, I have a new truck, which I intend to use for business and personal purposes. However, I have a loan on it. Are any of the loan payments tax deductible?

I realize I can write off gas payments when I travel for the business, etc...

Thanks.

 

[tranquility]

I have a small side business where I write about people who cook food at home as an experiment which can be used at the business. Can I deduct my food and home expenses to further my expertise in my writing business?

What do you think?

The rule is the ordinary and necessary expense of doing business. I think your plan to deduct home food costs will fail *both* the ordinary and the necessary tests and would not be deductible. However, we could shift the facts around to make it potentially deductible. It would be an argument which the IRS would likely be quite suspicious of. But, restaurants deduct the food purchases for what they serve as cost of goods sold and for their test kitchen as an expense so it would all depend on the exact facts and circumstances.

The business portion of the interest payments on your car, along with gas and other costs for direct business use are deductible. Remember, it's direct costs for business and a percentage business allocation of loan *interest* payments (Or, leasing costs, less inclusion.) and depreciation.

 

[LdiJ]

I have a small side business where I write about people who cook food at home as an experiment which can be used at the business. Can I deduct my food and home expenses to further my expertise in my writing business?

What do you think?

The rule is the ordinary and necessary expense of doing business. I think your plan to deduct home food costs will fail *both* the ordinary and the necessary tests and would not be deductible. However, we could shift the facts around to make it potentially deductible. It would be an argument which the IRS would likely be quite suspicious of. But, restaurants deduct the food purchases for what they serve as cost of goods sold and for their test kitchen as an expense so it would all depend on the exact facts and circumstances.

The business portion of the interest payments on your car, along with gas and other costs for direct business use are deductible. Remember, it's direct costs for business and a percentage business allocation of loan *interest* payments (Or, leasing costs, less inclusion.) and depreciation.

As far as the car is concerned, keeping a mileage log for business miles makes more sense, and keeps things less complicated. Mileage often turns out to be better than actual expenses anyway.