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- 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)
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Need Some Deductions for 2011?
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Updated for 2011
Small Business Deductions: Meals and Entertainment
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Deducting Cost of Tickets to Events
Theater or sporting event tickets purchased for business associates are treated as an entertainment expense provided you accompany your associates to the event.
You may only deduct 50% of the face value of the tickets even if you actually pay more, for example, to a ticket agent or scalper.
If you buy tickets only for your associates and not for yourself, you have to choices as to how to deduct the cost of the tickets:
- Treat the tickets as a gift and deduct up to $25 per ticket, or
- Treat the tickets as an entertainment and deduct 50% of the face value of each ticket. If you make this choice you must be able to show that a business discussion took place either before or after the event.
Tickets to Sporting Events:
Tickets to a sporting event are deductible as an entertainment expense.
Deduct 50% of the face value of the ticket. You may not deduct 50% of an amount above the face value.
Example:
You pay a scalper $150 for a ticket with a face value of $50. You may only deduct $25 (50% x $50) an an entertainment expense.
Next:
Meals and Entertainment Expenses: Deducting Skybox Rental
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
- Entertainment Facilities
- 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
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