Happy Thanksgiving!

 

All of us at Gordon Advisors, P.C. would like to wish you and your family a very Happy Thanksgiving!

We asked our Gordon family what they are thankful for this year!  

They also shared some of their favorite Thanksgiving food, memories and their plans for this Thanksgiving!

Sherrylee – I am most thankful for my family.  And I always look forward to the big Thanksgiving Turkey!

Adam – I look forward to the Thanksgiving Turkey and of course watching the Lions!

Sali – I am thankful for my employment at Gordon Advisors, P.C. and I am looking forward to some Black Friday Shopping!

Paul – Thankful for 3 kids at Michigan State University.  And thankful that Michigan State beat U of M and Ohio State this year!

Christine – When we were little, we visited our Aunt up in Mount Pleasant.  She was a great cook.  One time though she accidentally put moonshine in the turkey instead of wine and there were STRONG fumes coming out of the oven that year!

Liana – This year we are doing something different.  My family and I are volunteering at a church preparing and serving meals to the needy.

Mary – Excited to spend time with my family.  We are going to the nursing home where my mom is and eating dinner with everyone.

Lynn –  I love pumpkin pie! Except for the time one of my sisters used salt instead of sugar in the pumpkin pie recipe and that pumpkin pie tasted AWFUL!

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Employee Spotlight: Sali Yakoub

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Sali Yakoub is a staff accountant here at Gordon. She mainly works on Trust Accounting, 1041 and 1040s

If you could meet anyone, who would it be?

  • Donald Trump is the one person that I would like to meet one day. He is a successful business man and I hope to be successful like him one day.

What is one thing you cannot live without?

  • My iphone because that’s what keeps me connected with people – without it I would be lost.

What is one thing that might surprise us about you?

  • I can speak and write in a different language besides English

As a kid, what did you want to be when you grew up?

  • I really wanted to be an actress, seeing how successful actors are, made me thrive to be like one.

What is the best vacation you ever took?

  • I would not call it a vacation but, the best permanent vacation was coming to the United States with my family and getting the best education that I believe was not possible back home.

What was your very first job?

  • My first job was at Tjmaxx

If given a chance, who would you like to be for a day?

  • I would like to be Angel Ahrendts, Apple’s Retail Chief and former CEO of Burberry, she is one of the most successful women, and seeing where she is now makes me thrive to become as successful as she is.

What aspect of your role at Gordon do you enjoy the most?

  • Being part of a team.

What was the first concert you ever attended?

  • My first concert that I attended was Drake’s

If Gordon were a T.V. show, which character – from any sitcom, drama, or reality – would represent you?

  • Vampire diaries and I would represent is Alena. Alena is a caring person even though she might seem shy sometimes that does not stop her from pursuing her dream.

Where NHL Hockey and Tax Deductions Collide

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by April K. Thiel, CPA, Gordon Advisors P.C., 248 952 0200

 

In recent tax news, the owner of the Boston Bruins petitioned the Court to dispute claims by the IRS relating to whether or not the team can deduct 50% or 100% of meals provided while on the road at away games.  Typically a taxpayer is limited to deducting 50% of the total meal expense.  The IRS is trying to limit the Bruin’s deduction for these away meals to 50% as well.  The Bruins on the other hand, believe the meals qualify for 100% deduction.  They will face off in Tax Court.

 

 

While this particular case relates to professional sports, this topic is not unusual amongst the majority of business owners.  Many businesses provide meals occasionally to their employees.  The ability to deduct these costs fully and also exclude from the employees’ wages, depends on the facts and circumstances of the scenario.  They can be fully deducted and many times excluded from the employees’ wages if they are considered de minimus.  While these exceptions to the 50% general rule are not all inclusive, they do represent the most common de minimus exceptions.

 

Meals on your business premises

For this exclusion, the employee’s place of work is the business premises.  The Bruins are arguing that while they are on the road for away games, the hotels serve as their business premises.

Meals provided for the employer’s convenience

For this exclusion, the meals served at the employer’s premises must be for the employer’s convenience.  Great examples include companies wanting their employees to stay and work overtime, wanting them to stay on the premises so they can work instead of incurring travel time to restaurants, etc.  In the Bruin’s case, while not specifically stated, it is assumed that staying at the hotel for dinner was a way to keep the team together and focused as opposed to a night out on the town before games.

Meals Excluded for all employees if excluded for more than half

If more than half of your employees who are furnished meals on your business premises are furnished the meals for your convenience, you can treat all meals you furnish to employees on your business premises as furnished for your convenience.

 

Even if the outcome shows that the Tax Court sides with the Bruins, just like any other business, substantiation is still required.  The argument the Bruins are using is somewhat considered atypical.  We will have to wait and see which side comes out victorious.  This area of tax is not always black and white, if you have questions, consult with your tax advisor.

 

Deducting Tickets to Sporting Events

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by Clarissa M. McCoy, Gordon Advisors, P.C., 248 952 0200

Baseball is in it’s post season, college and pro football season is grinding away and pro basketball and hockey seasons are just starting!  There are a lot of opportunities for companies to take clients, and prospects to many of these games and often companies wonder if they can deduct these sporting event tickets as a business expense, and if so, how to do it correctly.

If you want to deduct as a business expense, the company must meet several conditions.  First, the sporting event must serve a purpose where the parties are there to conduct business.  That means at the sporting event, the parties must engage in a business meeting, negotiation, discussion or transaction.  Also an employee, or representative from the company who provided the tickets must be present.  If they are not, than the tickets are considered a gift.  Additionally, it is recommended that for the business purpose of the sporting event, a private suite is ideal.  Substantial distractions can’t take away from business purposes.

There are many facets when it comes to entertainment, and gift deductions that really depend on the specific situation.  Please call us if you have any questions or specific questions!

Gordon Advisors, P.C. 248 952 0200