Don't Write-off Your Personal Chef

My least-favorite tax-influencer Karlton Dennis is at it again, saying he can write-off his private chef because he just has business meeting meals every single evening at his house. That way, him and I quote, “his family because they are on his board” can have a private chef tax-free. Just Write-Off Your Personal Chef

The advice was so bad - even H&R Block commented “For anyone in the comments, don’t do this.”

But why is this bad advice? There’s two sections of the tax code this will run afoul of - 162 and 262.

Section 162 states that for a business expense to be deductible, it must be “ordinary and necessary”. Are daily business dinners at your home, that include your family, ordinary? Are they necessary? And you’re having them seven days a week? There is no reality where this stands up in an audit.

Additionally, Section 262 states that “Except as otherwise expressly provided in this chapter, no deduction shall be allowed for personal, living, or family expenses.” It’s clear that Karlton is suggesting manipulating daily expenses that are personal in nature, and trying to make them deductible through his business.

Additionally - even if your spouse to family is part of your business, in the tax court case Fitch v Commr., the IRS took the position that business meals with spouses alone are not deductible.

In short - please don’t listen to anything Kartlon says, he’s more interested in views and engagement than providing correct information to his audience.