Floyd Mayweather trying to write of 20K for Strip club visit

[Reyaj]

https://www.yahoo.com/sports/news/floyd-mayweather-sends-20k-tax-bill-to-strip-club-204400349.html

I don't understand how he can do this though? Is he saying it was a business expense? If so can you do that with strip clubs?

 

[Bible_Belt]

According to documents retrieved by the Daily Mail, Mayweather Promotions LLC sent a 1099 tax form to the strip club and wants the club to pay taxes on the $15,000 in singles thrown into the air and $5,000 he and his crew spent at the club on May 25, 2014

A 1099 is the independent contractor version of a W-2. Some jobs are allowed to 1099 you, which means you pay double the social-security tax. They don't have to pay their half, like with a W-2 employee.

Claiming that spending money at a strip club makes them your independent contractor is ridiculous.

 

[Tenacity]

I'm not sure why he didn't just categorize it as a business expense in relation to entertaining clients or employees? I take prospects to dinner for example and get to write off that expense.

 

[Bible_Belt]

You can write off business expenses that are reasonable.

For example, a company car for business...sure, that's reasonable. But, I happen to know of one self-made millionaire entrepreneur who is about to give most of his money back to the IRS. His company car was a new Ferrari. When he flew across the country, he would pay a trucking company to haul his Ferrari to whatever city he was visiting, just so he could drive his own car. That's a good example of not being reasonable. The IRS ended up denying the deduction, auditing him for a lot of other bad deductions, and now they are going to take pretty much everything he has.

I've taken potential clients to strip clubs before, and I'm sure my boss wrote off the expense. But we were reasonable about it. We didn't drop 5 figures worth of cash.

 

[Fatal Jay]

Smart move, can only tip my off of to this man, always making power moves.

 

[backbreaker]

my mother throws a 4th of july bbq (going on right now actually) every year that she invites 100-150 people and spends 8-10k throwing between entertainment, food, etc, she gets up on the mic and mentions her business and hands out business cards,writes the whole thing off lol.

she spent about 1200 dollars on FIREWORKS this year for my 16 year old sister and her friends. They will be popping fire crackers until august. I mean why not lol it's free basically.

 

[dasein]

Mayweather could actually negotiate a business arrangement with clubs attended that could result in 1099ing the club... in advance, and in writing. I bet the club did 2-3x their normal business that night just on the word that he was there. He's within his rights to negotiate for a piece of that, but didn't, so lesson learned.