Meals, Entertainment, and Gifts
Everyone Loves Getting a Tax Break for Doing Something Fun
There are many times when a meal, a gift, or entertainment is a very legitimate business expense—just as legitimate as advertising or other promotional expenses. However, there are also many times in which these “business” expenses are really just an excuse to have some fun and get a write-off in the process. Because it is not easy for the IRS to discern between legitimate expenses in these categories, and those that are not, there are strict rules imposed on the record-keeping requirements for these expenses. There are also significant limitations placed on the dollar value that you can deduct for these expenses. In many cases, 50% of the ...