Golf Tax Deductions for Self Employed

[barksdal87]

Forgive me if this isn't in the right place but was having a conversation with a friend the other day and they mentioned an associate got their company name/logo on their balls and basically deducted it as an advertising expense for his business even though I am willing to bet a majority of those balls ended up in his bag. I found it interesting as someone who is self employed and wondered if anyone else has heard of this or any similar things that people try and game?

[bigred90gt]

I have a couple of buddies that do it. They both give balls to customers (I’ve gotten a couple dozen from one of them, who is my insurance agent). They buy in MASS quantities. I think he spent $10k on one order. The other buddy also buys gloves with his logo on them. He said he only buys them in his size, lol. He gives them out at corporate events if someone has that size.

[KAndyMan]

Almost ANYTHING and EVERYTHING is fair game for a write off when you own a business. Doesnt really mean its free in any kind of way though. The way i look at it is with all the other expenses we business owners have to eat the whole "write off" thing is just a small bonus. When i was first starting out i was playing a Sunday morning round with a guy and not one ounce of business was discussed, then we get to 18th tee and he just randomly blurts out his company name like he had just come down with tourettes and nothing more. I was confused and just asked him "what was that about??". His response was "this round is now officially a tax write off".

[Wriggles]

I'm a retired CPA. Within reason, balls given away would be promo item, deductible. Smoozing a client at a fancy club, could be deductible. within reason. I had one client that restored an antique car, on the government's dime, as car expenses. I had 99% honest clients, distanced myself with the real cheats.

Bigger the business, the more can be deducted. Had one client, a lady. She was supposed to be a self employed photographer. She went on "seminars" in tropical resorts, bought $$$$$ in equipment, and made 3K in the year I did her consultation. Net loss, $100K+. More like a hobby than a business.

I'm sure she was audited at some point. When I cautioned her about her exorbitant "business" expenses, she basically told me to bug off. As a business woman, she replied, she was entitled to deduct such expenses.

I'm glad she got another CPA. She made me sweat, just talking to her.

Excedrin headache, # 4/15.

 

[greg]

I am pretty sure the tax laws have just changed regarding these types of deductions. For example, NFL tickets - no longer deductible.

[greg]

> @Wriggles said:

> I'm a retired CPA. Within reason, balls given away would be promo item, deductible. Smoozing a client at a fancy club, could be deductible. within reason. I had one client that restored an antique car, on the government's dime, as car expenses. I had 99% honest clients, distanced myself with the real cheats.

> Bigger the business, the more can be deducted. Had one client, a lady. She was supposed to be a self employed photographer. She went on "seminars" in tropical resorts, bought $$$$$ in equipment, and made 3K in the year I did her consultation. Net loss, $100K+. More like a hobby than a business.

> I'm sure she was audited at some point. When I cautioned her about her exorbitant "business" expenses, she basically told me to bug off. As a business woman, she replied, she was entitled to deduct such expenses.

> I'm glad she got another CPA. She made me sweat, just talking to her.

> Excedrin headache, # 4/15.

>

 

Yep. Accounting can be an art not a science. ;-)

[BB28403]

Interesting article I read and wriggles might find this interesting. So, a Law firm looked over why people in professional fields were being audited. And it seems that if you deduct past what they get for FICA and Social Security then it triggers an audit.

So for example Richie's Financial Services makes 240k . Richie, being what he thinks is a "whiz" deducts everything he can think of. Well at 140k (I don't know the most current number) Richie starts cutting into what he owes for social security, Medicare, fica, etc etc. congress does not like when people do not pay that , so that is what triggers richie's audit. The fact that he deducted past the point where he needed to pay his fair share of social security, Medicare, fica, etc. etc.

so some advice if you want to avoid an audit, do t be stupid and write off "golf items". Golf is a luxury and they know that.

[Wriggles]

> @BB28403 said:

> Interesting article I read and wriggles might find this interesting. So, a Law firm looked over why people in professional fields were being audited. And it seems that if you deduct past what they get for FICA and Social Security then it triggers an audit.

> So for example Richie's Financial Services makes 240k . Richie, being what he thinks is a "whiz" deducts everything he can think of. Well at 140k (I don't know the most current number) Richie starts cutting into what he owes for social security, Medicare, fica, etc etc. congress does not like when people do not pay that , so that is what triggers richie's audit. The fact that he deducted past the point where he needed to pay his fair share of social security, Medicare, fica, etc. etc.

> so some advice if you want to avoid an audit, do t be stupid and write off "golf items". Golf is a luxury and they know that.

Very interesting. Thanks for sharing.

 

[BB28403]

> @Wriggles said:

> > @BB28403 said:

> > Interesting article I read and wriggles might find this interesting. So, a Law firm looked over why people in professional fields were being audited. And it seems that if you deduct past what they get for FICA and Social Security then it triggers an audit.

> > So for example Richie's Financial Services makes 240k . Richie, being what he thinks is a "whiz" deducts everything he can think of. Well at 140k (I don't know the most current number) Richie starts cutting into what he owes for social security, Medicare, fica, etc etc. congress does not like when people do not pay that , so that is what triggers richie's audit. The fact that he deducted past the point where he needed to pay his fair share of social security, Medicare, fica, etc. etc.

> > so some advice if you want to avoid an audit, do t be stupid and write off "golf items". Golf is a luxury and they know that.

> Very interesting. Thanks for sharing.

>

 

No problem! I ran a IT business here in NC for years. I had one client who was a very successful federal tax attorney for large corporations and I think he went to Harvard also. He was really interesting to speak with each time he needed IT help. He would have his whole day written down on a to do list, over 100 items usually. Wish I was that organized. Still have to file my taxes and it is April 13th! They really need to move the masters a week before or after tax day. or move tax day.

[lumberman2462]

I own a business and I’ve bought logo balls and given to business contacts. Never occurred to me to try and deduct. If I could just figure a way to deduct good scotch.....

[Hanlpa01]

> @lumberman2462 said:

> I own a business and I’ve bought logo balls and given to business contacts. Never occurred to me to try and deduct. If I could just figure a way to deduct good scotch.....

 

Drink one glass with a friend who is a “potential client” and expense the whole bottle. Source: that’s what my boss does.

[ssfranny]

> @lumberman2462 said:

> I own a business and I’ve bought logo balls and given to business contacts. Never occurred to me to try and deduct. If I could just figure a way to deduct good scotch.....

 

put your name on it and give to yourself at functions haha