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Business Entertainment

Celebrate big-time entertainment write-offs

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in Compensation and Benefits,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

All work and no play can make Jack (or Jill) a disgruntled employee or client. So, you may decide to treat some of your top customers or valued employees to an outing as the summer draws to a close. By knowing the tax-law rules for entertainment costs, you can double your pleasure with top-dollar write-offs.

The 50-percent rule

For starters, you're generally permitted to write off 50 percent of your qualified business entertainment and meal ex-penses. That 50-percent rule applies to expenses paid by employers, employees and self-employed people (including independent contractors). But employees can be reimbursed tax-free for 100 percent of their out-of-pocket costs.

The 50-percent limit extends to dollars spent while traveling away from home on business, entertaining clients at your place of business or some other location or payments at a business convention, luncheon or other meeting.

For instance, you c...(register to read more)

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