Tax - Entertainment Deductions

[moon]

Originally Posted by MoneyGuy

He doesn't understand how business works. Taking top clients out is great for business. It keeps my top clients satisfied and results in referrals. Maybe he's an employee in some beaucratic environment where he wishes he could strike out on his own and make better money and be able to run his own show, but he's afraid to leave the secure corporate world for the risky world of the self employed.

I have no desire to strike out on my own and make just fine money now, although I guess since I just quit my job I make no money now but I am still fine with that as I have enough money that I am not concerned with it. I have left the corporate world twice now so have no problem leaving the "security" that it offers. I would say it is more risky financially to go unemployed then to enter the magical world of self employment.

I understand how business works. I understand that for you it is a big deal. In my opinion it isn't something that is necessary to have tax breaks for. I don't think that it is a requirement for doing business and certainly not something that I feel people should be complaining about.

[moon]

Originally Posted by Incinerator

Is that not how business is conducted around the world? "I scratch your back, you scratch mine", I'd like to hear a new way if you have one

oh & "lol" at fredr123's comment

I am not sure how me taking a guy out so I can get a job with him in the future is what business is about. That is what I have seen many of these things end up as and what I was getting at in my post.

[Slava]

Originally Posted by MoneyGuy

Nope, as has been said, you can't get around it by giving a gift certificate. If that were possible, I could do this, "My client, this lunch will cost me $30, of which I only can claim $15. However, I'll buy a gift certificate for the cost of the lunch, give it to you and you use it to buy lunch and I get to claim $30.

Don't think CRA hasn't thought of that one.

This is why I don't give restaurant gift certificates. I give Coles gift certificates regularly to clients instead.

Really?? I stand corrected! Thankfully I don't do this anyway!

[Incinerator]

Originally Posted by moon

I am not sure how me taking a guy out so I can get a job with him in the future is what business is about.

That is what being self-employed is all about, you wake up every morning unemployed looking for new "jobs". At the end of the day if you've got "jobs" to work on then great, you've earned your living for the day. If not, well that's how self-employed people goes out of business.

[Dan02]

100% should be deductible.

[MoneyGuy]

Originally Posted by moon

I am not sure how me taking a guy out so I can get a job with him in the future is what business is about. That is what I have seen many of these things end up as and what I was getting at in my post.

YOu taking someone out for lunch so you might get a job is not deductible under any circumstances because it sounds like you'd be an employee. Employees don't get the deductions that we self-employed folks get. as a general rule, as am employee pretty well nothing gets deducted.

Originally Posted by Dan02

100% should be deductible.

CRA, are you listening?

[MoneyGuy]

Originally Posted by fotze

But as an employee, it is 100% on the expense account.

Not if he's meeting with a prospective employer, which is what he suggested.