J.K. Lasser's 1001 Deductions and Tax Breaks 2015: Your Complete Guide to Everything Deductible

CHAPTER 10 Entertainment

1. Meals and Entertainment
2. Company Holiday Parties and Picnics
3. Sporting and Theater Events
4. Home Entertainment
5. Entertainment Facilities and Club Dues
6. Recordkeeping for Meals and Entertainment Expenses
7. Gambling Losses

 

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2014 that had expired at the end of 2013. Check the online supplement in February 2015 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2014 returns.

Your personal entertainment costs—eating out, going to the movies or a ball game—are not deductible. But there's no law saying you can't combine business with pleasure—and make Uncle Sam foot the bill. It's common business practice to wine and dine customers, clients, and other business associates in the hopes of getting new business or keeping existing business. If you meet certain conditions, you can treat these expenses as deductible even though they may have provided some element of personal pleasure or recreation. But in view of the potential for abusing the write-off option, the IRS looks very closely at entertainment deductions. So be fully prepared to support any of your claims with the necessary proof to back up the positions you take on your tax return.

This chapter explains the types of entertainment costs you can deduct and the recordkeeping required to back up your write-offs. For more information, see IRS Publication 463, Travel, Entertainment, Gifts, ...