How to Feed Your People, Not the Tax Man

Do you provide food and drinks to your barn staff? Make a morning latte run to keep the grooms happy? Order in pizza when show preparations run into the evening? Provide lunch at shows? If so, how you record those purchases can affect not only your own tax bill, but also the taxes your employees owe. Most people who have a passing familiarity with business taxes in the US are aware that “meals and entertainment” expenses are only 50% deductible for income tax purposes. However, there is a big exception. Employer-provided meals are tax-free to the employee and 100% deductible by the employer if they are provided: • On the employer’s business premises. • For the convenience of the employer. • To employees who are “on duty”. The employer’s business premises are generally defined as where the employees work. For most of you that’s in your barn or on your …