b'at the end of the discussion.Remind your people to be on the for the changes inweather, lookoutthe (SAFETY)8.Positive approaches and conclusionsandtotheaction should be used whenever possible.thentakeappropriate towrap it up andcome home whe~ \'-\'necessary. They might gripe aboutheir tTHE TOOL BOX SAFETYshortthatbutleast KAUFMAN\'S KOLUMNhoursday,atthey\'ll MEETINGbe able to come back tomorrow-which time worn clicheflowers Theabout theisn\'t bad when you consider the alterThe "tailgate"or "toolbox" safetyandshowers reallyholds adifferentnatives. meeting is avery practical, effectivemeaningtotheroofingprofession.(Taken from Kaufman\'s Kolumn by waytopromotesafetyonthejob,What it can mean isadelay in jobJack Kaufman in the April, 1987 issue completionofrain. We are becausetheof particularly if the meeting is keptFlorida Forum.) short,all aware of the serious water damage simple and is conducted by a knowl problems that arise during this time of edgeable supervisorforeman.In ortheth.eyear,and do our best not to letTAX REFORM AFFECTS aa smallthem happen.DEDUCTIBILITY OF case ofcontractor withoperahimself mayWhatwesometimesfailtogiveBUSINESS MEAL AND tion, the contractorbe the one to conduct the meeting.enough attentionis theENTERTAINMENT A favorable feature of"tailgate"tosafety problem thebrought aboutthis kind of meeting is that it can be used equallybyweather.EXPENSES well for bothand small operations.Just as proper planning prevents poor largeperformance ( t hf"5P\' ") soThe Tax Reform Act of 1986 signiInsmall operations itbe possibleoseamouss, mayficantly modifies the treatmentmost will improper planning by your fo1:emanof toatmeeting have all employeestheatlead to potentialmealandentertainmentexpenses one time, whereas with larger opera disaster, even without the water damage problem.incurredincarryingonatradeor tions it may be more advantageous toYour people must be trained some business. Whereas the prior law allowed splitemployees into groups accordthetime early in their careerthata 100% deduction for most meal and ingoccupationsunderwith you tooremployees\'wet weather can multiply the hazardsentertainmentexpenses,ataxpayer, specific foreman.undernew law,permittedmost of the job.It seemsthat your crewtheisin Tomakethese"tailgate"safetyleaders, always thinking of getting asinstances only an 80% deduction for meetingseffective,thereareafewmuch workdoneaspossiblebeforesuchexpenses.Additionally,notall points to remember.they have to quit because of the _on deductions formerly allowable will not 1.Hold the meetings at least once acoming rain, wait untillastnow be so recognized by the Internal month. Regular meetings will givethepossibleRevenue Service. Therefore, a taxpayer the employees the feeling that thetoseekingutilize thesemust minute before they startbutton up. Theyare tobeapplauded for theirtodeductions meetingsareavaluable,regularcompany loyalty, but they must alsosatisfy two threshold questions: Is the part of the job.business expenditure deductible?fso, takeintoconsiderationthehazardsI2.Perhaps the best time to hold thethatarise withe firstofto what extent and to whom? willth droprain.Thefirsttest whichmust be met meetings is at the beginning of theHurrying on the roof is bad und1?concerns the deductibility of the meal daywheneveryoneisalert.Ifany circumstances, but when a crew is moreconvenient,however,thetryingtogetthingswrappedupasor entertainment expenditure. Under prior law, business~d meetingscan be held either rightquickly as possible, they oftenmealsente~n_leavementweredeductibleiffurnished after lunch or right after a break.themselves wide open for an accident.undercircumstancesgenerallycon3.The meetings should be heldRooftopstakeonan ice-likequality some sidered to be conducive to a business where on the job where the peoplewhen wet, and there\'s nothing worsediscussion. There was no requirement thanup top. Shingles can sit and relax.skating whileandthat business actually be discussed at shakes give poorthey get 4.Be sureto limit each meeting tofooting whensuch a meeting, often referred to as a wet and the smartestto bethe notthan 5 or 10Con placein"quietThe TaxAct moreminutes.eve~ta showerstorm is with bothmeal."Reformhas tinue to the next meeting any subjectoforchangeddeductibility feet flat on the ground.therequirement dealun Slick conditions aside, there on which there is a greatofsuchthatthetaxpayermustnow finished discussion.is alwaysestablishthattheexpenditurewas thethreatthe terrifyingofconsequencesdirectly related to, or, in the case?fan 5.Choose only asingle point or sub of the electrical storms for which theitem directly preceding or followmg a ject that is not too broad. This isMidwest issense famous. Commonwillsubstantialandbonafidebusiness very important.tell you thatshouldn\'tonroof youbeadiscussion, that such item was associ6.Spend some time andpriorduringanelectricalstorm,but how thoughtmany times have you seen other roofersatedwiththeactiveconductof the to the meeting so you can be pre (of course, yours wouldn\'t do_anythingtaxpayer\'s trade or business. In order paredtostimulatediscussioniflike that) up on a roof hastemngg~tforanexpendituretobe"directly necessary.torelated," the following tests must now 7.Althoughmeeting mayopenedthe roof watertight when the storm 1sbe satisfied: thebealready upon them? More times than by a statement ofsubject and a theyou\'d like to admit, I\'m sure1.The taxpayer must have more than presentation ofhazardproblem, theorTragedycanjumpupandst~keageneralexpectationofderiv~g attempt to encourage the group toanyone atmoment\'sbutsomeincomeorotherspecific get into a discussion of th~ subJ~ct.anotice,durrng Asummation of the solution whichthe rainyseason weshouldcome totrade or business benefit from the expect the probability ofexpenditure. will provide safety should be madeserious weather and the hazards that go along with it.(continued on page 4) Page 3'