Rookie question: we see ton of instances where comapnies are putting personal expenses like travel, meals etc under business expenses for tax purposes. Are they not subject to an audit and is it not wrong to do so? Or are they just hoping these expenses fly by?

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Posting as :
works at
You are currently posting as works at

Me when I see a target GL account name “Wife compensation”

likefunny

there’s a difference between putting personal expenses through the company and claiming they are business expenses

totally normal for an owner to put personal expenses to a company. at year end they will usually work with a tax person to figure out a plan to contribute in or dividend out a certain amount

claiming personal expenses as business, not really normal and will probably get fixed as part of their filings

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We’re in FDD bro. We don’t care if they’re committing tax fraud unless it’s going to hurt the buyer

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nq a debt like item "client should consider tax diligence" solves that real easy

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Do you know these are personal, or are you just assuming all meals and travel are personal? There are plenty of legitimate buissness travel and meals out there

It’s only fraud if they get caught. Everyone drop their favorite personal expenses - mine was a guy that had his 74’ Viking on the balance sheet and his competitive bill fishing team on payroll.

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