Mr B wrote:

- quote -

These are meals for the convenience of the employer, and if
not substantial, they can simply come out in the wash so to
speak, i.e. your latter assumption.

However, taxpayer should be aware that he has to keep
separate account of the cost of these items and include them
probably on a separate line on the state and local sales tax
returns. The state don't care if they were not sold; they
still want their cut.

Happy New Cheer$,
Harlan Lunsford, EA n LA
(and in process of butting horns with a state sales tax auditor)

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Taxpayer runs a Pizza shop and at various times will let his
employees eat a Pizza or drink a soda at no charge. Is
there any way that he can deduct the cost of the food that
is consumed or does it work itself out by reducing the
inventory??

Thank you

--
George L. Anthony

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