Q. In a recent article, you said you can deduct home entertainment even if you never discuss business at the party. Is this really possible?
A. Yes. The first paragraph of the article you reference explains that deductible entertainment may precede or follow a substantial business discussion. Later on I mentioned that business doesn’t actually have to be discussed during the party, which is true, although a prior or subsequent business discussion is implied.
Don’t forget that only the amount attributable to business guests at a house party is deductible. Deductions are limited to 50% of qualified expenses, but if this is a company party such as a Christmas party or summer outing, then the costs are 100% deductible.
A. Yes. The first paragraph of the article you reference explains that deductible entertainment may precede or follow a substantial business discussion. Later on I mentioned that business doesn’t actually have to be discussed during the party, which is true, although a prior or subsequent business discussion is implied.
Don’t forget that only the amount attributable to business guests at a house party is deductible. Deductions are limited to 50% of qualified expenses, but if this is a company party such as a Christmas party or summer outing, then the costs are 100% deductible.
