We started working with a new client and we were working through the company credit card charges. A number of the items looked to be personal items.
So, we contacted the client, and it was his stance that everything is deductible, and the chance of an audit is slim.
We notified the client that that is not an appropriate stance and that is not how we work. I also know that the client would throw up under the bus if there was an audit if possible. But we send e-mail instead of phone calls, so we have a trail for our defense.
We are classifying the personal expenses as distributions, burning through their equity and tax basis.
We work for the clients, true. I am not going to jeopardize my business for any single client. No one is paying me enough for that risk.
So everything is not deductible, in spite of what people want.