Entertainment Expense Deduction

Entertainment Expense Deduction

A reduction in one's income for purposes of calculating one's income tax. The entertainment expense deduction is equal to up to 50% of what a business spends in the course of buying meals for or otherwise entertaining a client, customer, or employee. In order to be eligible for the deduction, one must be able to prove that one conducted business with the person being entertained.
References in periodicals archive ?
162(m) limits on deductions for executive compensation, cases involving voluntary employees' benefit association (VEBA) and deferred compensation deductions, IRS guidance relating to travel and entertainment expense deductions, developments under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) regulations and the new "Nanny" tax provisions.

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