Expenses as a 1099 Contractor Employer and Employee.

Forum|Forum|1 year ago
May 22, 2024
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I: Is there a difference or distinction for tax purposes between write-off and expense? If there's, please clarify and dumb down as much as possible.

II: Can I write-off / expense my own lunch when I'm on the job for contracting work

III: When I hire people for contacting jobs and I pay for their lunch for example, buy five (5) boxes of pizza/ large pie for about seven (7) to ten (10) people, can I expense this?

IV: If I've lost my receipts but have charges on my bank statement, can I still claim this and what can I do if asked during an audit.

Ask the Experts - Biz Tax - May 2024

EleanoreS

To answer your questions:

There is no difference between an expense and a write-off. The terms can be used interchangeably.
The cost of your personal lunch at a job site is not considered a business expense
Meals that you provide for your employees or contractors at a job site can be expensed. For tax purposes 50% of the total cost is deductible.
It is always best to have business records that are as complete as possible. Ideally, you should have both the receipts and bank statements to support your business expenses. That being said, I would not let missing receipts prevent you from claiming legitimate business expenses you are entitled to. It would depend on the auditor whether to accept the bank statements without the supporting receipts.

This is an article about taking business tax deductions that you may find helpful.

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