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Big Grin

Interesting question. But you know what they say about, 'if something seems too good to be true...'. I admit that I would be shocked. IF this were the least bit tangible, wouldn't it require some sort of 'expectation of profit' like a business venture would?

"Why yes, Mr Auditor, that bottle of 1945 Krug was absolutely necessary to calibrate my palate. Absolutely. Oh! And did I mention that I'm preparing to start a Blog. That's business(ish) isn't it?"
I'm no tax accountant, but I would be careful with writing off wine purchases in a Schedule C. You will just be inviting more trouble than its worth. Schedule C deductions are an automatic red flag for an audit. Before you do, I would find the tax cases where the tax courts have ruled in favor of writing off such expenses. If you are a wine professional employed by a wine distributor or retailer, taking wine tasting courses may be a tax deductible expenses if your employer requires you to take them. I may be wrong, but that's what I remember when taking a few tax courses.
In my area, distributors very frequently attend tastings and they get very large accounts for writing off sample bottles.

However, in the specific chain I'm in, sample bottles are considered gifts and are grounds for termination, and we very infrequently have tastings. We are required to spend our own money to taste wines for the most part.
quote:
Originally posted by NolanE:
In my area, distributors very frequently attend tastings and they get very large accounts for writing off sample bottles.

However, in the specific chain I'm in, sample bottles are considered gifts and are grounds for termination, and we very infrequently have tastings. We are required to spend our own money to taste wines for the most part.


I'd very highly doubt you could deduct it from your income in your scenario as it's not "your" cost of business.

I asked my accountant the same thing a few years ago when I wanted to pick up some new computers. I had my own consulting company so I could deduct the costs, but after I folded my company and just got a salaried job, he said it wasn't adviseable for me to itemize it as a deduction.
quote:
Originally posted by NolanE:
In my area, distributors very frequently attend tastings and they get very large accounts for writing off sample bottles.

However, in the specific chain I'm in, sample bottles are considered gifts and are grounds for termination, and we very infrequently have tastings. We are required to spend our own money to taste wines for the most part.
If you go to a wine tasting (i.e., Wine Spectator's Grand Tour tasting) at your own cost, then I would think you could deduct it as an education expense. But you can't deduct the cost of flying to New York or Las Vegas.
quote:
However, in the specific chain I'm in, sample bottles are considered gifts and are grounds for termination, and we very infrequently have tastings. We are required to spend our own money to taste wines for the most part.

Are you saying that if a distributor holds a trade tasting, those bottles are considered gifts? And if you go, and thereby receive those "gifts", you can be terminated? Holy crap! Texas really IS nuts when it comes to wine!

But if you work for a retailer and you want to learn about wine, and you buy bottles for that purpose, you're in a problematic area. How do you distinguish the bottle you bought for education from the one you bought for dinner?

I probably wouldn't do that. What if you form a not-for-profit company whose purpose was marketing or teaching about wine? Would you be able to deduct those expenses for classroom supplies? Forming the company isn't hard or particularly expensive.
educator expenses are not deductible, but there is an educator credit called the lifetime learning credit, hope credit or American credit.

However this has to do with courses that are in line with your line of work. Thus if you were an attorney and then wanted to take classes to become a Sommelier, then you cannot take the credit. If you had to take some classes to further your knowledge about the law then you can take the credit. This of course is indicative on one's AGI of course.

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