All Forum Posts by: Simon W.

I presented this to my other accountants (CPA) friends and they said what I said.

And like I said it depends how you do it.

Say for coffee and donuts. If you get them from Dunkin Donuts then it's deducted as Meals & Entertainment

If it's on site in advance such as DIY coffee, then it's consider Office Expense. I thought I mention this.

From Investopedia;

The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs. COGS appears on the income statement and can be deducted from revenue to calculate a company's gross margin. Also referred to as "cost of sales."

Food and Drinks are not MATERIALS to produce the goods.

It either Office Expense (100%) or Meals & Entertainment (50%)

Ok, say that I am wrong

what would you debit and what would you credit?

Sorry but I have never seen COGS be used together with food/snack/beverage expense. COGS is usually dealt with purchases and inventory, not meals.

If you are rehabbing the place, you are providing materials, you shouldn't be mixing up COGS with material and coffee.

Thank you!

nevermind, i don't know how to delete this thread.

Hi,

I have a property that I am wholesaling in St. Louis. I live in NY, I have a possible cash buyer that is in Chicago.

I am letting the cash buyer choose their own closing company. Does the closing company have to be in where the property is located?

it's pretty much the same anywhere else. but the city is hard to do wholesale. the market here isn't that great.

It really depends on how you do it.

The OP was simply stating which deduction.

If he bought those DIY coffee and have the donuts in advance in the office, it's office expense. Office = on Site.

If he bought the donuts/coffee on the way to there to treat them, then no it's a Meal & Entertainment deduction

How is COGS involved? COGS is when you have inventory/products to sell.

If anything, you would just use the meal & entertainment with the line item "meals provided for convenience to contractors"

Hi BPer,

I am trying to JV with another wholesaler in a different State.

Would the agreement be valid just with both our signatures on it?

Do both of us have to have original copies? (signing it on two copies and mailing it back and forth)

Does the JV need a "Name" to use when putting it on P&S agreement? And if it needs a name, we would have to go file it in court, right?

If the JV doesn't need a name then for the P&S agreement can just have 1 person's name along with and/or assignee(s), correct?

Thank you,

Simon

There are guidelines

Coffee and Donuts are pretty standard that you can deduct 100% if you provide an office coffee bar.

Beer would be a no.

Pizza depends. You would have to have a business reason for them to eat at work.

These all are considered office expense. 100%

Meals deduction is when YOU go out on a business trip and eating. 50%

Meals deduction is when you go out for lunch or dinner to discuss business. 50%

Meals and Entertainment is usually together which is 50%.

Hope that helps. By the way I am an accountant. Really depends on how you see things and can you reasonably make it 100%, that's your call.

Well to the untrained eye, you will notice only the things you see. You should get an inspector during your inspection period and be there to find out what he/she looks for. You can then have an idea for the next property.

Sure, a deal is a deal. You can get it done even if you are on the other side of the Country.