Search

Deducting Company Parties

When you know the rules, you can party with your employees and deduct 100 percent of the cost.


Interestingly, if you feed your employees during a training program, your deduction is only 50 percent. Make sure you know the rules that give you the 100 percent deduction for employee entertainment.


The IRS says that the following types of entertainment qualify for the 100 percent employee entertainment tax deduction:


· Holiday parties, annual picnics, and summer outings

· Maintaining a swimming pool, baseball diamond, bowling alley, or golf course


The IRS makes it clear that the above are examples, and that other types of entertainment may also qualify for the 100 percent entertainment deduction. The tax code states that “expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees” qualify for the 100 percent deduction.




13 views0 comments

Recent Posts

See All

Documents & Deadlines

Appointments and Tax Document Deadlines It's that time again! Thank you for your business and loyalty throughout the years. We look forward to serving your tax preparation needs in 2021. To keep yo

February 2021 Newsletter

Who Qualifies for First-Draw PPP Money Today? Two things to know about the Paycheck Protection Program (PPP) first draw enacted on December 27, 2020: The first draw is for those who missed getting in

10 Proven Tax Reduction Strategies for the Self-Employed

You can feel overwhelmed when you search our archive library for strategies that apply to the self-employed. For example, a search today will yield more than 263 strategy articles with the words “self