Question

I live in Texas, and I occasionally take clients and prospects with me on fishing trips. I have found this to be good for business, and I enjoy it. Are these trips valid business deductions?

Short Answer

Your fishing trips are a form of tax-deductible entertainment.

You can deduct many of the expenses if you keep good records that prove the fishing trips are valid business entertainment deductions.

With fishing trips, there’s a second, hidden obstacle to watch out for.

If you own or rent equipment that you use on your fishing trip, such as a boat or fishing rods, the IRS “entertainment facility” rules deny deductions for that equipment. We have more on this ugly rule later in this article, but first to your rightful deductions.

The Cost of Happy Clients

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