Business Deductions
- Amortization
- Business Losses and Net Operating Losses
- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
- Depreciating Your Car
- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
- Hiring Workers
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
Quick Links
Hot Topics
Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Small Business Deductions: Meals and Entertainment
Entertainment Facilities
Entertainment facilities are not considered business assets. You may not deduct the operating expenses of maintaining facilities used to entertain clients and customers.
Examples of entertainment facilities include:
- Airplanes
- Apartments
- Automobiles
- Fishing camps
- Hotel suites
- Hunting lodges
- Swimming pools
- Tennis courts
- Homes in a vacation area.
A season box seat or pass at a sporting event or theater is not considered an entertainment facility.
Operating expenses are disallowed and include items such as:
- Rent
- Utilities
- Security, and
- Depreciation.
The following are deductible without having to show a business purpose:
- Interest
- Taxes, and
- Casualty losses
The cost of food and drinks at an entertainment facility are deductible if they meet either the directly related or associated test.
Next:
Meals and Entertainment Expenses: Deducting Cost of Tickets to Events
Related Links
- Per Diem Rates - IRS Publication 1542 Oct 2010 for Travel Within the Continental U.S.
- Domestic Per Diem Rates - General Services Administration
- What Are Meal and Entertainment Expenses?
- The Rules for Deducting Meal and Entertainment Expenses
- The Restrictive Tests for Meals and entertainment Expenses
- The Associated Test (meals and entertainment)
- Audit Proofing Your Meal and Entertainment Expenses
- Entertaining at Home
- Entertainment Costs of a Spouse
- Skybox Rental
- Club Dues
- Trade Association Meetings
- Business Gifts
- Gift or Entertainment?
- Taking Turns Paying the Bill
- How Much Can You Deduct?
- Transportation Costs
- Exceptions to the 50% Limitation Rule
- Where to Deduct Meal and Entertainment Expenses
- Deducting Qualified Plan Awards
- Deduction Limit for Qualified Plan Awards
- Non-Qualified Plan Awards
Copyright © 2008-2012 Larry Villano. All rights reserved.