Is Entertainment A Deduction?
Entertainment costs are often one of the most commonly looked at business expenses on tax forms. The tax laws have changed in regard to which and how much entertainment deduction can be taken. It used to be that a full 100 percent of your entertainment costs related to your business were deductible. That changed a few years ago to just 80 percent. Believe it or not, this has further dropped to only 50 percent.
That means that if you take that client out for a dinner at the most upscale place in town, 50 percent of the cost is deductible, no matter how much you spend. As for what you can deduct as a discount, this includes just about anything from taking clients to a game to a concert are event just having a group over to your home. 50 percent of this is deductible, but do keep your receipts.
This entry was posted on Thursday, January 10th, 2008 at 3:56 am and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.