Writing off Food Products

[jonna]

I'm not sure if this has been addressed before, but my Director told me that you can write off food products you buy to try out recipes, but that you can only write off the same recipe twice.

So for example, if I make the Triple Chocolate Micro-cake, I can write off any thing I buy to make it with, twice.

Am I getting that right?

 

[DZmom]

If you make a recipe 2 times then you can write-off the cost for all the ingredients for both times you purchased the recipe's ingredients. If you make a recipe again, then the 3rd time's ingredients are NOT tax deductible!

 

[jonna]

Gotcha! Thanks!!

 

[Happy Mom]

I am confused here. If you buy the ingredients and make the recipe for a show, isn't that a valid business expense? I do not seek reimbursement from the host.

How was it determined that two is the magic number?


Thanks

 

[showmehow2]

I wondered about that too. Hopefully my accountant knows!

 

[Harrle]

Unclear??

If you make a recipe 2 times then you can write-off the cost for all the ingredients for both times you purchased the recipe's ingredients. If you make a recipe again, then the 3rd time's ingredients are NOT tax deductible!

Isn't it if you make the recipe 2x's at home to test/try for your family you can write it off. If you purchase ingredients for your hosts show as a gift for her you can still write if off?? Do you categorize it some way in PP if you purchase items for a show/host?

Leea

 

[fruit76loop]

Seperate costs

Isn't it if you make the recipe 2x's at home to test/try for your family you can write it off. If you purchase ingredients for your hosts show as a gift for her you can still write if off?? Do you categorize it some way in PP if you purchase items for a show/host?

Leea

Leea, that is correct. I seperate my food cost into two categories Food-P and Food-S. These stand for practice food and show food. You can write off the food for that you purchase for shows no matter how many times you have made the recipe!

When I have my receipt from the store, I circle the items for the recipe and write what recipe I made and either put a "P" or an "S" at the top so when I enter my receipts at the end of the month, I know which category to put it in!

 

[Happy Mom]

Okay, that makes sense.