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Entertainment Deduction

Entertainment Deduction: IRS Publication #463


You can no longer take a deduction for any expenses related to activities generally considered entertainment, amusement,  or recreation.

Examples include:

Entertaining Guests:

1-Entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theatres; at sporting clubs; at sporting events; or on a hunting, fishing, vacation or smiliar trips; on a yacht; at a fishing camp, swimming pool, tennis court, or bowling alley; in a hotel suite; or at a vacation resort. 

Entertainment Facilities:

2-Generally you can't deduct any expense for the use of an entertainment facility. An entertainment facility is any property you own, rent, or use for entertainment.

Club Dues & Membership Fees:

3-You cannot deduct club dues and membership fees paid to any club organized for business, pleasure, recreation, or other social purposes such as: country clubs; golf clubs; athletic clubs; airline clubs; hotel clubs.

Your kind of business may determine if a particular activity is considered entertainment.

Separating and allocating Costs:

If you have one expense that includes the costs of entertainment and other services (such as lodging, meals, or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. You must have a reasonable basis for making the allocation.


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