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Yes, typically your boss will give the okay for a lunch out with a client, perhaps even a golf outing. But what about other more obscure expenses? There have been some strange business expenses reported…Below are a few of the stranger we’ve heard about.

A company called Certify surveyed approximately 2000 individuals over five years regarding weird business expenses. They released a list featuring some of the highlights they heard about in terms of business expenses.

 

Among the more notably strange and/or over the top:

  • An $800 human skull (research expense)
  • Llama rental for a photoshoot
  • Boarding costs for a snake
  • $8000 Rolex

 

A business can deduct those expenses that are considered ordinary and necessary. Necessary means it helps the business in some capacity and by ordinary they mean a more common tax write off given the company’s line of business.

Ones considered over the top and extravagant such as those found above, will likely no longer be allowed as a tax deduction.

 

Tax Code Changes

Under some of the new tax laws, there will be changes as far as what a business can write off. You used to be able to deduct 50% of entertainment-related costs; this is no longer the case. You still though can deduct fifty percent of meals you have with your clients.

A couple of years ago companies could deduct unreimbursed employee expenses; however, this has also changed. And as of 2018, no such tax breaks are allowable.

If you’re unsure of what you can and cannot deduct, it’s probably best to speak with a certified accountant versed on the new tax code. Some of the changes are a bit complex and studying the new tax laws may not be something for which you have time—especially while running a company.

 

If your business is in need of funding First Union can help. We offer loans from short term loans to lines of credit. Call today!

 

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Are you ready for greatness? First Union Lending is here to help you achieve your financial goals.

Let's Do this together!

Are you ready for greatness? First Union Lending is here to help you achieve your financial goals.

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