Wine related tax advice

Cellar Rats (ITB)
1

My accountant is not up to speed with certain issues involving expenditures involving wine as they relate to being written off as a business expense.

Does anyone here know of someone who is pretty savvy in this area of accounting work?

2

Do you mean ones that are consumed for your tasting & research & online or mailed newsletters ?
Our accountant lists consumed wine as I’ve listed above in bold.

3

There’s one here in NM that does a super job. One of my dentist friends gets to write off all his wine expenditures and has survived 2 audits of same.

So they must know what they are doing.

I’ll need to dig out the name if you are interested in someone non-local to you.

4

Carrie,

Yes, exactly. That and also some questions re: my wine travel related biz.

Jeff,

This is not to have someone do my taxes, it is more about obtaining advice and having a few questions answered.

5

I’m sure they can do that as well. They just arent on the boards and will no doubt charge you some hourly fee.

6

I was just about to start a thread on this subject. I have had 3 people ITB tell me to write off my wine purchases, but a friend of mine who lives here in Paso that I went to school with has a husband who is a CPA, and he had never heard of it.
So you write them off as business expenses? Even if you are a winemaker?

7

Linda, I am not a CPA but did spend 6 years at Deloitte & Touche LLP doing tax credit studies…and yes you can write off your wine purchases. As long as they are for research/business purposes…you are comparing different styles, regions, etc., and comparing them to the wine you make…no different than buying competing products and doing bench testing of those products. The grayest area I have seen though or biggest challenge is say you make Syrah and Chardonnay but you are constantly writing off Vermintino, Debit, Champagne, etc. The Service (IRS) may make a claim that those varietals are not a use business purpose to your winery. Also, if you go out to dinner and just order a random bottle of the wine list well, if that dinner is not a business purpose dinner, tough to write it off.

It’s really like anything in life, use common sense. If you buy something to check it out against your product, chances are you can deduct it. If you are buying just to drink - to have with dinner, friends or just a glass while shopping - well chances are it isn’t deductible.

The problem lies with CPA’s/accountants/enrolled agents that suggest you can write off all wine related purchases b/c that’s your business or ultra conservative accountants that don’t see the biz purpose for tasting/buying others wines.

Or

8

Thanks Tony.
Since I rarely buy Zin, I guess I’m screwed. [rolleyes.gif]

9

Linda…I am sure you will be fine either way…remember…IT IS FOR RESEARCH PURPOSES…

Roy - shoot me a PM and let me know what you are looking for and I’ll see if I can answer it. If not, I am sure I can find someone in your area who can be of assistance.

10

Maybe if I drink it out of a beaker? [wow.gif]

11

all my wine purchases are for research for this wine board “business”!!!

12

Does Riedel make one?
[rofl.gif]