Discussion:Chef/Restaurant Manager 2106 Business Expense
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Discussion Forum Index --> Tax Questions --> Chef/Restaurant Manager 2106 Business Expense
| 13 April 2006 | |
| Any thoughts on a chef or restaurant manager deducting 100% of meals out in competing restaurants as an employee business expense on Form 2106 (to get restaurant ideas and network(in a small town)). What about 50% deduction?
Thanks | |
| 13 April 2006 | |
| 50%. Only if it is part of his job description and his employer does not reimburse him. It seems strange that an employed chef will go to other restaurants to get idea without the approval and/or reimbursement from his employer. The IRS will carefully look also at the amount charged for this meals, if he was dining by himself (cannot have guests if "research" is his motive), the frequency etc.
It seems to me a red flag (Chef - Meals deduction), but I may be wrong. | |
| 14 April 2006 | |
| Make sure your client has a letter on restaurant letterhead stating that his position requires him to eat at competing restaurants etc and that he is not reimbursed for these expenses. If you do not have
that letter as well as the usual M&E documentation, the deductions will automatically be disallowed. | |
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