Quote:
Originally Posted by cmbdiesel
Best way to keep a business partnership alive is -
Business money is business money
Personal money is personal money
You screwed the pooch getting that other phone line for your mom.
Pay the entire years contract right now to the business from your personal money.
Make a point with your partner that the business doesn't buy personal stuff.
All expenses covered by the business should be directly for you or your partner.
The chump change you save on those thousand tiny cuts is not worth the aggravation or acceleration to the end of the partnership.
Just my .02...
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Add Bot's .02 and my .02 it's up to .06 now.
Never mix business and personal.
If you're claiming the full bill as a business expense it could make for some interesting discussions with an IRS agent should they pull your number out of the hat. It's not so much about the phone bill, it's about the perceived willingness to skirt the regs thus giving them reason to dig deeper. We had a full audit two years ago, two agents in our conference room every day from 9-5. They were hellbent on finding something to pinch us on. But thanks to GAAP and our accounting firm putting a CPA on-site during the audit to answer every question (to the tune of $10K!), they got nothing from us but a handshake and a thank you for their time. Don't give them any excuses to delve deeper.
In subsequent discussions with the firm's managing partner, it seems the IRS is targeting lower hanging fruit (LLC's, LLP's, sole proprietorships, small businesses) for audit. They can utilize one or two agents at a smaller business rather than 5-10+ needed to audit the books of a large corporation. And often the owners are just using Quicken books or their cousin Eddie for their accounting, leaving more opportunities for indiscretion or oversight. More targets = more potential fines (albeit smaller $ amount) = more bang for the buck.