Deducting Entertainment Expenses

Posted on


If you pick up the tab for entertaining present or prospective customers, you may deduct 50% of the cost if it is directly related to the business. To be deductible, the main reason for the entertainment expense would be the active conduct of business. You must be attempting to make a sale or otherwise be conducting business with the specific expectation of getting some business benefit out of the deal. Be very careful about writing off dues to certain clubs or entertainment facilities, these are not deductible business entertainment expenses. An exception to the 50% rule is if you are inviting the general public to an event you put on to promote your business. In this case, it would be considered advertising expense and as such would be 100% deductible. Expenses less than $75 don’t require receipts, with that said; it’s easier to just keep the receipt.

To learn more, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.



Nevada Edge


This 100-page book is packed with everything you need to know about the benefits of incorporating and Nevada corporations and LLCs.

Copyright © 2022 | Nevada Corporate Headquarters, Inc. | All Rights Reserved.