NEW YORK-Taking a customer to lunch, dinner or the theater is part of doing business. And often, a lot of fun.
But company owners may find that claiming such entertainment expenses as income tax deductions is complicated, and maybe painful.
Many owners find out when they’re compiling their income tax returns that they can’t deduct the full amount of a meal or event. Maybe they can’t deduct any of it.
IRS Publication 463, Travel, Entertainment, Gift and Car Expenses will give you a good grounding in deductions for entertainment expenses. And, as with any tax matters, it’s always a good idea to consult a tax professional like an accountant or an attorney to be sure you’re following the rules.
Here’s an overview of what the IRS allows, and doesn’t allow, for business entertainment deductions: