Company Christmas Party

[Jiggers]

I am a C-Corporation. Ever since I opened my business, I always took all employees to a very nice restaurant for a very nice Christmas party and dinner. This has been a tradition for 20+ years.

This year I have finally scaled my operation back, leaving only my wife and myself as the only employees. We do get W-2's!!!

Can I still have my annual Christmas party and dinner, for just my wife and myself?

I can't find anything in the TB or QF or any tax code that says I can't.

[jainen]

business purpose?

>>Can I still have my annual Christmas party and dinner, for just my wife and myself? <<

In what way is that an ordinary and necessary expense? What is the business purpose?

[veritas]

From Natiro's post

It's the latter code section which allows 100% deduction as it relates to the former code section which specifically discusses "expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees (other than employees who are highly compensated employees."

Looks like a no.

[Unregistered]

It's the latter code section which allows 100% deduction as it relates to the former code section which specifically discusses "expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees (other than employees who are highly compensated employees."

Looks like a no.

If they are not highly compensated, then why not?

[Unregistered]

If they are not highly compensated, then why not?

Regardless of actual compensation, they are statutorily defined as highly compensated.

[WhiteOleander]

Am I invited? Which restaurant? I'd prefer a really good steak.

[Lion]

Highly Compensated

They're the two most highly compensated employees in the entire company, and between them they earn 100% of the total compensation for the company. Sounds pretty high, relatively speaking, in more ways than one....

[sea-tax]

What if instead of calling it a X-MAS party they called it a shareholders meeting or staff meeting? Then would not all the expenses be deductible.

[jainen]

Why stop there?

>>instead of calling it a X-MAS party they called it a shareholders meeting or staff meeting?<<

Why stop there? They could deduct all their expenses simply by calling their house a business office. They could even claim a loss simply by changing the designation of their income to expense.

[sea-tax]

>>instead of calling it a X-MAS party they called it a shareholders meeting or staff meeting?<<

Why stop there? They could deduct all their expenses simply by calling their house a business office. They could even claim a loss simply by changing the designation of their income to expense.

Now jainen that my friend is a complete frabrication of the truth that you are suggesting. I merely asked a question. I was in no way advocating someone to lie but rather change their view point.

basically if the meeting was infact a staff meeting but had x-mas theme what is wrong with that.