Small Business Financial ManagementApril 29, 2025
Creative Tax Deductions: When Does ‘Innovative’ Cross the Line? A Case Study on S Corp Lunches
The Thin Line Between Creativity and Compliance Tax professionals often encounter clients pushing boundaries to maximize deductions. But when does “creative” cross into risky territory? A recent case involving an S Corp owner attempting to deduct 100% of weekly lunches with his spouse—a law partner—as “company-wide training” raises critical questions about legality, ethics, and IRS...