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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Small Business Deductions: Meals and Entertainment
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Deducting Skybox Rental
A skybox is a private area in a sports arena containing luxury seating. Skybox seats are usually rented for a season or for a series of games, for example, the World Series.
Separately stated items charged for food and beverages are deductible as entertainment expenses and subject to the 50% limitation.
Here's how you deduct the cost of seats in a skybox:
- One game: If you rent a skybox for just one game, deduct 50% of the cost of the skybox.
- More than one game: If you rent a skybox for more than one game you may not deduct more than the face value that you would pay for the same number of non-luxury seats. The 50% limitation applies.
EXAMPLE (one game):
- You pay $1,000 for a skybox with five seats for one game.
You may deduct $500 (50%x $1,000).
EXAMPLE (two games):
- You pay $1,000 for a skybox with five seats for two games.
- The cost of five non-luxury box seat tickets for two games is $400 ($200 per game).
You may deduct $200 (50%x $400).
Next:
Meals and Entertainment Expenses: Deducting Club Dues; Trade Association Meetings
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
- Tickets to Events
- 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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