Is Your Holiday Party Tax Deductible? & Other Year-End Tax Implications
November is the perfect time to do two things when it comes to your finances, especially if you own a business – catch up on your bookkeeping and file your Beneficial Ownership Information (BOI) report!
We are nearing the end of the year and many people find themselves lost in a whirlwind of backlogged bookkeeping. Now is a great time to either get it up to date yourself or hire a bookkeeper to get you caught up for the year so you aren’t stressed out come tax time. Keep in mind, you aren’t alone when it comes to realizing you are behind on bookkeeping, which means this time of year is when bookkeepers start getting booked up (ha, no pun intended!) so you will want to get your spot locked in soon.
November also means we are nearing Thanksgiving and the holiday season – which means lots of yummy food and holiday parties – yay! I love to host, and one of my favorite things to do is to get creative with the tablescape, although typically the men quickly venture off from the table to watch football on Thanksgiving…*sigh*. We also have a fun family tradition of going to a Christmas tree farm and cutting our own tree down every year – it is not as hard as it sounds!
To keep your holiday party tax deductible, make sure your holiday party is primarily for the benefit of, and open to, ALL employees (you can include your employee’s spouses). Don't forget to keep receipts documenting the date, time, location, amount, attendees, and purpose of your holiday party expenses. And last, but certainly not least, make sure your expenses would not be considered extravagant or lavish.
When in doubt, check with your tax accountant to ensure you understand the tax implications of your holiday party expenses!
Now on to the BOI report, oh boy! As part of the Corporate Transparency Act, your business may be required to file a Beneficial Ownership Information report. Failing to file this is no joke and can result in a $591 per day penalty!
The due date for your BOI filing is based on the date your business was registered, and you can learn more about your filing requirements as well as e-file the report here.
Wishing you a lovely Thanksgiving from Moneta Accounting Solutions!
