We recently brought you information about tax deductions, but one place where deductions can be especially challenging is with entertainment expenses. Sometimes only half of an expense can be deducted and sometimes none. Sometimes a meal can only be deducted if work is discussed while sometimes a meal can be deducted even if business never comes up. If your business has entertainment expenses, these are rules that you should be aware of so that you collect the right information throughout the year and claim it correctly when filing taxes. This recent article
from The Washington Post
can help you keep it straight.
When in doubt, it is always a good idea to consult with an accountant. Then, take what you’ve learned into account when entertaining clients or customers in the next fiscal year. Good luck with your taxes!
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.