Tax Deductible Entertainment Expenses

Business people who look for a way to deduct more time at the golf course, tennis courts or at sporting events, may want to consider taking clients and customers along. Such outings can help cement business relationships and taking a client or customer along can provide a way to help subsidize your expenses. Business entertainment expenses are 50% deductible. To deduct entertainment expenses, the tax law requires that a substantial and bona fide business discussion take place either before, during or after the entertainment event.

As with any entertainment expense, the expenditure needs to be properly documented by receipts, who was entertained and a brief description of the discussions that took place.