Expenses
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Expenses Our club has been having our meetings through ZOOM since November and one of the members have been the one to subscribe to ZOOM and has been paying for it. We are now going back to live meetings and need to know if the club treasurer should write her a check for the subscription cost out of the club checking account and if so can it be a deductible club expense. Also we are looking in to buying Applied Materials, Inc. (AMAT) was started in Santa Clara, California where it has remained. They have acquired businesses in Europe, Japan, No. America, Israel, China, Italy, India, Korea, Southeast Asia, and Taiwan. These businesses were acquired for particular aspects of the business. The business continues to be headquartered in Santa Clara, California and we need to make sure we will not have tax problems with their acquisitions outside the United States. Karen: I am sure the accountant-types on this message board will weigh in, but here are my two cents. Regarding Zoom. If the Zoom account was taken out in the Club name and used exclusively for club meetings, I would categorize it as a deductible expense and reimburse the member for the cost. If the member established the Zoom account in her name so she could use it for personal or family meetings as well, then I would categorize it as non-deductible. In either case, it won't make a significant difference. Once of the expense is divided among the members, they would need to be itemizing expenses on their Federal return and have enough other business expenses to get over the threshold of that deduction. In either case, the members should decide whether to reimburse her for the expense depending on the facts and what is fair. Regarding Applied Materials. Lot's of US-based companies have foreign operations. Taxation of those operations are handled at the corporate level so all its dividends are US-based. Foreign taxes would only come into play if you bought an ADR-based stock or a stock on a foreign stock exchange. Jack Ranby Thanks. I would agree with all you said. I guess I just wanted to be sure.
On Monday, May 17, 2021, 06:57:41 PM CDT, John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote:
Karen:
I am sure the accountant-types on this message board will weigh in, but here are my two cents. Regarding Zoom. If the Zoom account was taken out in the Club name and used exclusively for club meetings, I would categorize it as a deductible expense and reimburse the member for the cost. If the member established the Zoom account in her name so she could use it for personal or family meetings as well, then I would categorize it as non-deductible. In either case, it won't make a significant difference. Once of the expense is divided among the members, they would need to be itemizing expenses on their Federal return and have enough other business expenses to get over the threshold of that deduction. In either case, the members should decide whether to reimburse her for the expense depending on the facts and what is fair. Regarding Applied Materials. Lot's of US-based companies have foreign operations. Taxation of those operations are handled at the corporate level so all its dividends are US-based. Foreign taxes would only come into play if you bought an ADR-based stock or a stock on a foreign stock exchange. Jack Ranby |
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