I own a restaurant which provides 90% of the food that myself and my family consume (i.e. it's food for personal use - and not part of the business) How should I treat this from a tax perspective ? Should I refund a percentage of the cost of the food ? Or is there some other method that is approved by the IRS ?
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No, in the Cost of Goods Sold section, there is a place to enter ''purchases withdrawn for personal use''. Enter what your family used in that field and TurboTax will adjust your COGS account to reflect the personal usage.
No The meals and entertainment on personal usage is non-deductible. The IRS modified the business expense deduction for meals and entertainment after the passage of Tax Cuts and Jobs Act (TCJA). The 2017 TCJA (Tax Cuts and Jobs Act) eliminated expenses related to entertainment and amusement Taxpayers may deduct up to 50% for the cost of food and beverage, not lavished and extravagant, related to trade or business.
Perhaps my question wasn't clear. I'm not expecting any deduction at all. My concern is that I'm reducing the profitability of my business my feeding myself and my family out of the "cost of goods sold" (i.e. the restaurant food). So should I make a journal entry that adds to owner drawings and depletes cost of goods sold ?
No, in the Cost of Goods Sold section, there is a place to enter ''purchases withdrawn for personal use''. Enter what your family used in that field and TurboTax will adjust your COGS account to reflect the personal usage.
Perfect - thank you
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