With business bookkeeping and basic tax tips for new and old entrepenuers

Monday, December 28, 2009

Entertainment

Most people understand what a business meal is, but what is business entertainment? Entertainment can be a variety of things, from an opera to a concert or basketball game. Are these deductible? Yes under the same conditions as for meals. The entertainment has to be with other people, you have to discuss or conduct business and you are allowed to deduct 50% of the expense on your tax return. On your books it would be at 100%. However you going to the movies every weekend with your girlfriend or boyfriend does not count; so don’t try to pull that one. You also need to document in a calendar or other record who the event was with and for what purpose.

Provided by Alamo Bookkeeping Associates LLC

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