Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Generally, to be deductible for tax purposes, you must show that entertainment expenses (including meals) are directly related to, or associated with, the conduct of your trade or business. You must also have records to prove the business purpose (under the applicable test) and the amount of each expense, the date and place of the entertainment, and the business relationship of the persons entertained. Entertainment expenses are usually subject to a 50 percent limit.
Posted on 01/03/2013 in News