If you spend $5,000 on business entertainment during the tax year, how much can you deduct?
If you said “50 percent,” you are correct.
How much of the $5,000 do you report to your tax preparer?
If you said “$2,500,” you are likely wrong. Why? Because tax preparers usually make the 50 percent cut when preparing tax returns.
In its publication where it discusses the entertainment deduction, the IRS states that you apply the 50 percent limit after identifying the amount deductible.
What does ... Log in to view full article.