Wed Jun 27, 2012, 10:22 PM

7wo7rees (1,294 posts)

My friend who still pines for Bush blames Obama for taking away his beer money

Can DU put on its sharp-looking thinking cap and assist in my memory?

My friend, let's call him Joe the Bummer, said that under Obama he lost the writeoffs he used to "do business with".

Joe was a tour manager for many country musicians you've heard of, and he met a lot of them in "business meetings" where current clients would introduce him. As manager, with an entertainment budget, and a per diem, and band to feed, they consumed alcohol at these "business meetings" where the expense was written off.

Joe is bummed that Obama took his beer money.

What gives? Why do I learn this from a Bush Leaguer? Did I miss the loophole memo?

(BTW, Joe has bought me a beer before. With no writeoff.)

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9 replies	Author	Time	Post
My friend who still pines for Bush blames Obama for taking away his beer money (Original post)	7wo7rees	Jun 2012	OP
these thought seem a bit random to me	Enrique	Jun 2012	#1
I can appreciate that comment	7wo7rees	Jun 2012	#4
I, for one, am glad that my tax dollars aren't paying for his beer anymore.	sadbear	Jun 2012	#2
Tell him to ask the legal dept.....I'm sure serving alcohol was unwise.	Historic NY	Jun 2012	#3
One would need to know more than simply "he lost the writeoffs" to know if he's sincere	arcane1	Jun 2012	#5
I'm asking for the legal wording from some new law in the last 3 years.	7wo7rees	Jun 2012	#6
Just a random thought...	agent46	Jun 2012	#7
My web research suggests business lunches were 100% deductible prior to 1986, then 80% deductible	struggle4progress	Jun 2012	#8
Yep. That's the answer I came up with.	7wo7rees	Jun 2012	#9

Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 10:25 PM

Enrique (22,648 posts)

1. these thought seem a bit random to me

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Response to Enrique (Reply #1)

Wed Jun 27, 2012, 10:28 PM

7wo7rees (1,294 posts)

4. I can appreciate that comment

It's like they don't know how to support their position with facts, but they've got a solid case. It was his fault.
So, WAS there some legislation Obama passed that made it impossible for business writeoffs for booze?

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Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 10:27 PM

sadbear (4,220 posts)

2. I, for one, am glad that my tax dollars aren't paying for his beer anymore.

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Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 10:28 PM

Historic NY (19,740 posts)

3. Tell him to ask the legal dept.....I'm sure serving alcohol was unwise.

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Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 10:29 PM

arcane1 (19,984 posts)

5. One would need to know more than simply "he lost the writeoffs" to know if he's sincere

I can't imagine how a business expense account translates into one's personal pocket money. Maybe his employer is the one who stopped paying for his "business meetings"

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Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 10:31 PM

7wo7rees (1,294 posts)

6. I'm asking for the legal wording from some new law in the last 3 years.

What act of Congress did he sign that makes it HIS fault?

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Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 10:32 PM

agent46 (859 posts)

7. Just a random thought...

Never fuck with a man's beer money.

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Response to 7wo7rees (Original post)

Wed Jun 27, 2012, 11:16 PM

struggle4progress (71,487 posts)

8. My web research suggests business lunches were 100% deductible prior to 1986, then 80% deductible

until 1993, and have since been 50% deductible.

Topic 512 - Business Entertainment Expenses

... Generally, only 50% of food and beverage ("meal") and entertainment expenses are allowed as a deduction. For exceptions to the 50% limitation, refer to Publication 463, Travel, Entertainment, Gift and Car Expenses ...
http://www.irs.gov/taxtopics/tc512.html

What Entertainment Expenses Are Deductible?

... A meal as a form of entertainment. Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. A meal expense includes the cost of food, beverages, taxes, and tips for the meal. To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided.
You cannot claim the cost of your meal both as an entertainment expense and as a travel expense.
Meals sold in the normal course of your business are not considered entertainment.
http://www.irs.gov/publications/p463/ch02.html#en_US_2011_publink100033878

The rules here seem rather complicated, and they seem even more complicated due to Joe's involvement in the entertainment industry, perhaps depending on whether the expense is direct or associated, whether the expense is covered by a per diem reimbursement, whether the expense falls upon an entity that regularly provides food or entertainment, etc etc

My own guess is somebody's accountant or tax attorney said something like, OK, I know you've been doing this your way for years, but my advice is DON'T DO IT THAT WAY ANYMORE! and Joe's reaction was Well, it must be Obama's fault! Fuck Obama!

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Response to struggle4progress (Reply #8)

Wed Jun 27, 2012, 11:21 PM

7wo7rees (1,294 posts)

9. Yep. That's the answer I came up with.

Last edited Wed Jun 27, 2012, 11:22 PM USA/ET - Edit history (1)

So for all the thought that was put into this by you and me was wasted on someone's unthought-out position.

The problem with arguing with stupid people is they drag you down to their level, and then beat you with experience.

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