Q. If we move a business lunch from a country club to a restaurant, can our business deduct the full cost? M.T., Larchmont, N.Y.
A. No. The general rule limiting entertainment and meal deductions to 50% of the cost applies regardless of the location where the entertainment or meal takes place. However, there are certain exceptions to the 50% rule, including food and beverages provided to employees on the business premises and food and beverages provided at company recreational activities in which all employees are invited to participate. For instance, the cost of a company picnic is 100% deductible.
Tip: If you hold a companywide event like a picnic, you can include business clients.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/37935/breaking-bread-with-clients-has-tax-limits "