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View Full Version : Questions for the accountants out there...


poj7
09-09-2003, 03:25 PM
Hi.

I have a question for the accountants. I own my own business and I was thinking I'd like to take my staff on a trip to WDW. Including myself there are six of us. Could I rent rooms/points to my business? What is the limit my office can be charged by me or my wife as the "renter"? If it is a "per room/ night could each staff member have his/her own room?

What about airfare? I assume that would be a legitimate expense. What other entertainment type expenses would be allowable for staff? What is the meal allowance? Would this trip need to revolve around a meeting or could it serve as a retreat?

Yes, I have contacted my accountant but haven't heard back yet. Thank you in advance for any thoughts.

RichAyers
09-09-2003, 03:36 PM
I am a Financial Analyst (not Accountant) to be exact, but work in the Accounting/Finance field. I also own an LLC and do Real Estate Investing so I am pretty familiar with what you want to do. As long as your personal and business transactions are "an arm-length" apart I would say it is totally legal. Your business buys many goods and services, I would assume, from varied vendors. "You" as an individual are just another vendor. The "business" can pick up airfare also...that happens everyday. I think that although many businesses have limits as to what one can spend on a hotel room, to minimize costs to the business, there is no legal limit, per se.

There is a 50% limit for business meals as a deduction for your business, but that is well-known and your accountant should be well aware of that. I am pretty sure there are no limits to airfare or hotel rooms - I can only imagine what Donald Trump, Lou Gertster, and other CEO's, celebrities pay for such things.

rich

spearenb
09-09-2003, 03:46 PM
Checking on another aspect... Would the 'person' who rented out the points to the 'business' need to pay taxes (sales or income) in this scenario?

Of course they would want to be legit about it... wouldn't they?

poj7
09-09-2003, 04:01 PM
Originally posted by spearenb
Checking on another aspect... Would the 'person' who rented out the points to the 'business' need to pay taxes (sales or income) in this scenario?

Of course they would want to be legit about it... wouldn't they?

Do owners on the Rent/Trade board claim the income they receive from renting out their points? Anyone know?

I'm asking because I want to go about this properly.

bethsg
09-09-2003, 05:19 PM
If a person owns a vacation property or second home, they are permitted to rent it out 2 weeks per year, without claiming that income on their personal taxes. I would assume if a person rents out their points, since it's a small portion of their overall point purchse package, they would technically fall into that same category. I can't imagine anyone claiming the rental income on their tax return.

msdis
09-09-2003, 08:35 PM
Do you need any more employees?