Article Date:
May 2015

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The Easiest and Funnest Deduction You’ll Claim This Year: 4 Rules for Writing Off Employee Outings—100%!

Estimated Tax Tip Savings: If you take a recreational trip with six employees to Florida for three days, you don’t have to settle for a 50 percent deduction: You can deduct the full $9,450 in travel and entertainment expenses—if you follow IRS rules.


So you want to treat six employees to a fun getaway AND write off the entire trip? Sounds like fun! Contrary to popular misconception, you can deduct 100 percent of some entertainment expenses—if you meet four simple criteria.


Entertainment expenses are generally NOT deductible unless you can show that the expense was directly related to a business meeting or discussion.1


Editor’s Update: Directly-related entertainment is deductible prior to January 1, 2018. See Tax Reform Wipes Out 50 Percent Business Entertainment Deductions.


Once you can show that expenses for entertainment are related to a business meeting, you can deduct 50 percent of those expenses.2 Not bad, but you can do better. Read on to learn how you can deduct 100 percent of your recreational entertainment expenses ... Log in to view full article.

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