Client call and said they had a trip(fishing) planned for them and several of their clients. Paid $500 for a boat rental and guide.Client had to cancel but their clients when anyway.They didn't get the $500 back and want to know if this is a expense since it was planned for their clients.Sounds a little fishy to me.
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Entertainment expense
See TTB page 8-10.
To be deductible, the entertainment expense must be directly related to or associated with the active conduct of the business, such as discussing business with a client directly before, during, or after the entertainment period, or the reasonable expectation of getting business from a client because of providing the entertainment.
The taxpayer, or an employy of the taxpayer MUST BE PRESENT when the meals and entertainment are provided to clients and business associates. -
Your client can deduct $25 per person as business gifts.Comment
Comment