In this episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses how you can get a 100% deduction on your work-related meals and his hot crypto pick of the week, Polygon.
Due to a recent Notice, 2021-25, you can now eat for free on the IRS. This is a topic Adam covered recently, but wanted to bring in back into light since many business owners aren’t utilizing it enough. Plus, Adam talks about an exciting and up and coming cryptocurrency, Polygon.
Eat for Free on the IRS
If you are a small business owner, you need to be aware of anything that will give you a tax deduction. Really, that’s smart planning for everyone! Notice 2021-25 was put out to help you, but giving you a 100% deduction on business meals. You can now deduct the full cost of food and beverages. Of course, this only applies to bona fide business meetings and an owner or employees must be present at the time the meals are served.
Under current rules, you can only deduct 50% of your business meals. This temporary rule allows for the 100% deduction from the beginning of 2021 until the end of 2022. We all know how the COVID-19 pandemic has affected our small businesses. Not only will this help alleviate some tax burden, it will also help boot restaurants and bars get back on their feet.
You can now cater an event for your employees. Take out an important client to a nice meal. So long as it’s not lavish or extravagant, you can essentially eat for free on the IRS! Take advantage of this break and help out your local community. As always, be safe when gathering and adhere to local rules.
Hot Crypto Pick – Polygon
The bulk of the podcast focuses on a rising player in the crypto space, Polygon. Formerly known as Matic, Polygon is “a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.” Before we get into all that Polygon is, please bear in mind that Mr. Bergman does own it with his retirement funds. However, IRA Financial is in the business of educating and not offering investment advice. Do your own research before investing in anything!
Blockchain is an exciting new technology and is what’s used for cryptocurrency. Beyond that, its uses are almost limitless. Everyone has heard of Bitcoin; it’s the number one crypto out there. It’s major issue is scalability. Bitcoin can transact about 4.6 transactions per second. In comparison, credit card giant Visa, performs 1,700 transactions per second! The cost to mine Bitcoin and the electricity it uses is also quite large. Essentially, it’s like digital gold. Nations might use it to transact, but probably not the average consumer.
On the other hand, Ethereum is the technology used for smart contracts. It has a scalability issue as well and the gas, or the cost to transact on the network has risen dramatically. Enter polygon.
What is Polygon?
During the original airing of this episode, Polygon was trading for $0.36. Today, it sits at around $0.82. The main goal is to essentially make Ethereum cheaper. Trading NFTs, for example, can go much faster and cost way less.
It’s predecessor, Matic, used a technology call Plasma, to process transactions off of the chain. Then, they would be finalized on the main Ethereum chain. On the other hand, Polygon is a platform designed for “launching interoperable blockchains.”
A developer can make polygon their own so that the blockchain used is specific to their needs. These chains will a part of the entire network, so they are not closed off. The idea is to make industries more efficient. This goes beyond the financial industry to music, health care and others, which can reduce infrastructure and insurance costs.
Polygon could make businesses and industries using Ethereum and blockchain for smart contracts more cost effective, fast, and secure than pretty much any crypto solution right now in the market… Plus, adapter modules for enabling interoperability for existing blockchain networks is big news for devs. Please listen to the full podcast, as Adam goes into more detail about Polygon. And don’t forget to eat for free on the IRS, too!
As always, thanks for listening and be sure to check us out on SoundCloud for all of our Adam Talks episodes!