A group of women smiling while sitting in a booth

Taxes, Trivia, and Tequila: Lessons Learned from a Night of Laughter and Tax Facts 

Taxes, Trivia, and Tequila: Lessons Learned from a Night of Laughter and Tax Facts

Taxes, Trivia, and Tequila: Lessons Learned from a Night of Fun and Facts

Last week, The Sphere Northampton hosted its 2nd annual Taxes, Tequila, and Trivia event, and it was nothing short of inspiring. With 20 attendees bringing their A-game, this wasn’t just a fun night—it was an eye-opening journey through the twists and turns of taxes. From interactive trivia to expert insights, everyone walked away with new knowledge to power their entrepreneurial journeys (and new connections to support them on that journey).

Here’s a recap of the biggest lessons we learned from the trivia questions that had us scratching our heads (and taking notes).

 


 

1. Not Everything is Deductible

Question: Which of the following is NOT a deductible business expense?
Answer: Business-related entertainment

While you can write off meals when traveling for business or office supplies, entertaining clients (like taking them to that big game) doesn’t qualify. The IRS draws a firm line here—so save the receipts for coffee meetings, not concert tickets!

Takeaway: Focus on deductible essentials like meals (50% deduction), travel, and supplies to maximize your tax benefits.

 


 

2. Quarterly Taxes Are a Must

Question: How often must independent contractors make estimated tax payments?
Answer: Quarterly

If you’re self-employed, skipping those quarterly payments can lead to penalties. The IRS wants its share in smaller, regular bites—not a big chunk in April. Plus it may help you stick to your budget and stay on top of your bottom line.

Takeaway: Set reminders and budget ahead to make timely quarterly payments.

 


 

3. Grants: Taxable or Not?

Question: I received a grant—do I have to pay taxes on it?
Answer: It depends on the type of grant and its purpose.

Some grants are taxable, while others aren’t, depending on how they’re classified and what they fund. For example, grants used for personal expenses might be taxable, but those for specific business expenses may not be.

Takeaway: Always check the fine print of your grant and consult a tax professional to avoid surprises.

 


 

4. Mileage and Deduction Rates Matter

Question: What is the IRS mileage rate for business use of a vehicle in 2024?
Answer: 67 cents per mile (and it will increase to 70 cents in 2025)

Keeping a detailed mileage log can help you claim this deduction accurately. It’s one of the simplest ways to lower your tax bill if you’re frequently driving for work.

Takeaway: Invest in a mileage-tracking app or keep a consistent log to claim every mile you’re entitled to.

 


 

5. Pass-Through Taxation Rocks

Question: Which entities allow for pass-through taxation?
Answer: Partnerships and S Corporations

Both partnerships and S-Corps allow business income to “pass through” to the owners’ personal tax returns, avoiding double taxation. For entrepreneurs, this can mean major savings.

Takeaway: Choosing the right business structure is essential—talk to an expert about what makes the most sense for your situation (do you see a theme here about consulting an expert?!_

 


 

6. Making More is Always Better

Question: Is it better to make less money to avoid higher taxes?
Answer: No, making more money is ALWAYS better.

While a higher income might mean a higher tax bracket, it also means more overall take-home pay. Don’t let the fear of taxes hold you back from scaling your business and scaling your bank account.

Takeaway: Focus on growing your revenue, then strategize ways to reduce your taxable income through deductions and credits.

 


 

Why This Matters

Beyond the trivia, Taxes, Tequila, and Trivia reminded us that taxes don’t have to be daunting. With the right knowledge, tools, and support, you can turn tax season from a source of stress into an opportunity to optimize your business finances. And our overall lesson? Consult a professional!

 


 

A Final Cheers to Our Community

This event wouldn’t have been possible without the expertise of Kelly Rose, CPA, and Jay Kozak of Common Capital, as well as the incredible hosting of Kayla Hevey from WWLP News Channel 22’s Mass Appeal. To our 20 attendees—thank you for bringing your curiosity, energy, and enthusiasm. You made the night unforgettable.

Missed the event? Stay tuned—The Sphere Northampton has plenty more workshops and resources on the horizon to keep you informed and inspired. Join us on February 11th for Speed Dating “for The Money,” another fun event designed to connect you to finance professionals to build your knowledge and your network.

Here’s to thriving as entrepreneurs, one tax deduction at a time. Cheers!

Scroll to Top