Dec
08
2015
08
2015
Business Entertainment Expenses
When are entertainment expenses of a business deductible on a tax return? And which expenses are really entertainment for tax purposes in the first place?
A business can deduct 50% of its expenses to entertain clients, customers, or employees if those expenses are ordinary and necessary and they meet certain requirements. Ordinary means the expense is common and accepted in your trade or business. Necessary means the expenses are supportive and fitting for your business.