Small Business Owners - What are your Non-Deductible Business Expenses?

[mamagoose]

My small business has very low overhead, home office, one employee (me), travel only once a year, so I have very little business expenses and most of them are deductible. I'm curious for other small business owners, what are some examples of your NON-deductible business expenses that you put through the business anyway. For example, I saw a realtor/flipper company on HGTV a while back that provided housekeeping and gym memberships for all their employees - it's not tax-deductible but they did it anyway because it made for a happy workplace. Anybody care to chime in and share their experience?

[csdreaming]

Interested too, bump!

[randymarsh]

My small business has very low overhead, home office, one employee (me), travel only once a year, so I have very little business expenses and most of them are deductible. I'm curious for other small business owners, what are some examples of your NON-deductible business expenses that you put through the business anyway. For example, I saw a realtor/flipper company on HGTV a while back that provided housekeeping and gym memberships for all their employees - it's not tax-deductible but they did it anyway because it made for a happy workplace. Anybody care to chime in and share their experience?

Are you sure that isn't tax deductible for the business? My company provides snacks and pop and tons of coffee in the kitchen. They can't deduct that as an "office expense"?

The IRS says:

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Seems like a relatively small benefit like a gym membership would qualify.

[calimom]

I remember reading that some of the big tech firms  (like Airbnb, Google, AppleP that provide employee meals were going to start taxing the employee for the perceived benefit for that - does anyone know if that actually happened?

And in my own small business, I have a small warehouse, a van, two employees, fuel, supplies, etc. etc etc so I have lots of deductions. Luckily.

[jwright]

A lot of those benefits are taxable fringe benefits and go to the employees W-2.  The business takes the deduction but also pays its employer portion of FICA tax.  Gyms that are located on premises and used by only employees are exempt from this and the business can still write it off.  However, if they are paying for membership to the local Planet Fitness, this is taxable.