< Back to IRS

Javier Cruz

Can I deduct season tickets as a business expense?

Hey tax people! So I've been a self-employed consultant for about 3 years now (marketing industry) and I'm trying to figure out what I can legitimately claim on my taxes. Last year I bought season tickets for the local baseball team ($3,200 for the package) and I honestly use these tickets primarily to entertain clients and potential clients. I'd say about 80% of the time I'm taking business associates to these games and actively discussing projects/opportunities during the event. I've heard mixed things about entertainment deductions since the tax law changes. Some people tell me I can't deduct anything related to entertainment anymore, others say I can deduct 50% if it's for business. My accountant from last year retired and I'm doing my own taxes this time around using software. Anyone know definitively if these season tickets are deductible? And if so, what percentage and under what category on Schedule C? Also, do I need to keep specific records of which games were business vs. personal? Thanks in advance!

The rules around entertainment deductions changed significantly with the Tax Cuts and Jobs Act. Prior to 2018, you could deduct 50% of entertainment expenses that were directly related to your business. However, the TCJA eliminated the deduction for most entertainment expenses, including tickets to sporting events. That said, there are a couple of exceptions that might apply to your situation. If you're providing the tickets to clients without attending yourself, you may be able to classify them as gifts (though there's a $25 limit per recipient per year). Or if you're treating the tickets as compensation for services (like employee bonuses or contractor payment), they could be fully deductible with proper documentation. The key is proper documentation. For any business expense, especially one that could have personal benefit, you need to keep detailed records of: - Who you entertained - Business purpose of the meeting - Business discussed - Date and location Even if not deductible as entertainment, the business meals at the stadium might still qualify for the 50% meal deduction if you purchase them separately from the tickets and properly document them.

0 coins

Wait, so if I take a client to a game but we discuss business the whole time and I buy them a hot dog, the hot dog is 50% deductible but the actual tickets aren't deductible at all? That seems so weird. What if I'm paying for premium seats that include a buffet dinner? Is that considered a meal or entertainment?

0 coins

You've highlighted an important nuance in the tax code. If you purchase premium seats that include food as part of the package, you would need to determine the reasonable value of the food portion versus the entertainment portion. Only the food portion would potentially be 50% deductible, while the entertainment portion would not be deductible. For instance, if your premium seats cost $300 each but include a $75 buffet meal, you might be able to deduct 50% of the $75 food portion ($37.50) but none of the remaining $225 ticket value. The IRS expects you to make a reasonable allocation if the food and entertainment aren't separately itemized on your receipt.

0 coins

After spending hours researching deductions for my consulting business, I stumbled across this amazing tool called https://taxr.ai that literally saved me thousands! I was in the exact same situation with season tickets to our local hockey team that I use for clients. The tax software I was using wasn't clear about how to handle it. I uploaded my receipts and calendar invites to taxr.ai and it immediately identified which expenses were potentially deductible and which weren't. It showed me that while the tickets themselves aren't deductible anymore, the meals purchased separately at the venue were 50% deductible when properly documented. It even created a report I could use if I ever get audited showing exactly which games were business-related with client names and business purpose.

0 coins

Does it actually tell you what category to put things in on your Schedule C? And how does it know which games were business vs personal? Did you have to input that info or does it somehow figure it out?

0 coins

This sounds too good to be true. How much does this service cost? Is it just for self-employed people or would it work for regular W-2 employees with side businesses too?

0 coins

It absolutely tells you the exact Schedule C categories for each expense, complete with the line numbers. That was one of the most helpful features for me as someone doing their own taxes for the first time. It gave me specific guidance on how to categorize everything properly. For distinguishing business versus personal use, you do need to provide that information. I uploaded my calendar showing client meetings at games, and for each receipt I uploaded, it prompted me to confirm if it was business or personal. Then it calculated the correct deductible percentage based on my inputs. The system doesn't make assumptions but guides you through providing the proper documentation.

0 coins

Just wanted to follow up about taxr.ai since I was skeptical at first. I decided to give it a try after my last post and wow, it actually delivered! I had boxes of receipts from my side photography business that I've been avoiding dealing with. The tool analyzed everything, flagged my business meals vs entertainment, and showed me I was missing out on home office deductions I didn't know I qualified for. The big revelation was about my camera equipment - I had been depreciating it all wrong. The tool showed me how to correctly categorize everything on my Schedule C and even identified a few risky deductions I was taking that might have triggered an audit. Honestly feel much more confident about my tax situation now. Definitely worth checking out if you're self-employed or have a side hustle.

0 coins

I had a similar situation with season tickets for clients and spent WEEKS trying to get through to someone at the IRS for a clear answer. Their phone system is a nightmare! After getting disconnected four times and waiting on hold for hours, I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. Basically, they get you to the front of the IRS phone queue so you can speak to an actual human being. I was connected to an IRS agent in about 20 minutes (instead of the 2+ hour wait I kept getting). The agent confirmed exactly what others have said here - entertainment tickets aren't deductible anymore, but separately purchased meals are 50% deductible with proper documentation. They also explained exactly what documentation I needed to keep to support my deductions.

0 coins

Wait, how does this actually work? They can somehow jump the IRS phone queue? Is that even legal? I've been trying to reach someone about my amended return for months.

0 coins

Yeah right. No way this is legit. The IRS doesn't let people cut in line. This sounds like some kind of scam to get desperate people's money. If it worked, everyone would be using it and the "front of the line" would just become the new line.

0 coins

It's completely legitimate and works through their specialized system that continuously calls the IRS using their algorithm to navigate the phone tree and secure a place in line. When they reach a certain point, they conference you in. It's not cutting the line illegally - it's basically automating the frustrating process of calling, getting disconnected, and calling again that many of us do manually. They're transparent about how it works in their video. I was skeptical too, but when you're waiting months to get an answer about tax issues that might cost you thousands, it's worth trying. There's nothing illegal or shady - they're essentially a tech-enabled waiting service that spares you the frustration of being on hold for hours.

0 coins

I need to eat my words and apologize for my skepticism about Claimyr. After posting that comment, my tax situation got desperate - the IRS sent me a CP2000 notice questioning my business deductions including some sports tickets and I needed answers fast. I reluctantly tried the Claimyr service and I'm shocked to say it actually worked exactly as advertised. I was connected with an IRS representative in about 25 minutes. The agent reviewed my situation and confirmed that while my season tickets weren't deductible as entertainment, the portion I was giving to clients without attending myself could be treated differently. She walked me through exactly how to document everything and what forms to include with my response to the notice. Saved me potentially thousands in incorrectly disallowed deductions. Never been so happy to be wrong about something!

0 coins

Something everyone's missing here - if you're paying for those season tickets through a business entity (like an LLC or S-Corp), you could potentially treat those tickets as advertising/marketing expense rather than entertainment! My CPA advised me to do this with our company's sports box. We prominently display our company logo in the box, mention it in our marketing materials, and use it exclusively for business development. It's helped us justify the deduction even after the tax law changes.

0 coins

Is this actually legit though? I feel like just putting your logo somewhere doesn't automatically transform entertainment into advertising. Wouldn't the IRS see right through that?

0 coins

You're right to question this - it's definitely a gray area that requires careful consideration. Simply slapping a logo somewhere isn't enough by itself. The key is demonstrating that the primary purpose is advertising and business development rather than entertainment. For it to potentially work, you need substantial documentation showing business purpose, tracking leads and business generated through the venue, and maintaining it as a legitimate marketing channel. It needs to be comparable to other advertising expenses in terms of ROI. Even then, it's considered an aggressive tax position that could face scrutiny in an audit. My situation is somewhat unique because we host industry events in our box and can show direct business development outcomes.

0 coins

Has anyone tried deducting these as charitable contributions instead? My accountant told me that if you donate unused game tickets to a qualified charity, you can deduct the face value of the tickets as a charitable contribution (subject to normal charitable deduction limits of course). I've been doing this with games I can't attend and at least getting some tax benefit.

0 coins

This is actually a smart approach for the games you can't use! Just make sure you get proper documentation from the charity acknowledging the donation. I volunteer with a youth program and we love getting donated tickets. The kids get an amazing experience and the donors get a legitimate deduction. Total win-win!

0 coins

This is such a helpful thread! I'm in a similar boat as a freelance graphic designer who bought Packers season tickets last year. Based on everything discussed here, it sounds like I need to completely change my approach for this tax season. I was planning to deduct the full $2,800 I spent on tickets, but now I understand that's not going to fly. Instead, I should focus on documenting the meals I purchased separately at games where I entertained clients, and maybe look into donating some unused tickets to local nonprofits for the charitable deduction. One question though - for those meals at the stadium, do I need the receipt to specifically break out food costs, or can I reasonably estimate what portion of my total game-day spending was on food versus other items like parking and merchandise? The concession receipts I have just show total amounts without itemizing.

0 coins

Great question about the meal receipts! The IRS generally requires you to have receipts that clearly show the amount spent on meals versus other expenses. If your concession receipts don't break out the food costs specifically, you have a few options: 1. Keep separate receipts - going forward, try to pay for food and drinks separately from other purchases like merchandise or parking 2. Reasonable allocation - if you have a receipt that combines food and non-food items, you can make a reasonable estimate of the food portion, but you need to be able to justify that allocation if audited 3. Document everything - keep notes about what you actually purchased (2 hot dogs, 3 beers, nachos, etc.) along with your receipts so you can support your allocation The key is being reasonable and consistent. If you're claiming 50% of a $60 receipt was food, make sure that's actually realistic based on stadium pricing. Also remember you need to document the business purpose and who you entertained for each deductible meal. The IRS is pretty strict about meal deductions requiring proper substantiation. For your unused tickets donated to charity, that's a smart move! Just make sure the organization is a qualified 501(c)(3) and get proper acknowledgment letters for your tax records.

0 coins

This is really eye-opening! I'm a freelance web developer and bought Lakers season tickets last year thinking I could deduct them as business entertainment. Sounds like I need to completely rethink my approach. Quick question for everyone - what about the parking costs? If I'm taking clients to games and we're discussing business, are the parking fees deductible even though the tickets themselves aren't? I probably spent close to $40 per game on parking which adds up over a season. Also, has anyone had experience with the IRS actually auditing these types of deductions? I'm wondering how strict they really are about the documentation requirements. I kept some notes in my phone about which clients I took to which games, but I'm worried that might not be formal enough if they come asking questions. Thanks for all the insights everyone - this thread probably saved me from making some expensive mistakes on my return!

0 coins

Great questions! For parking costs, unfortunately they would likely be considered part of the entertainment expense since they're directly related to attending the sporting event. The IRS generally views parking as an integral part of the entertainment activity, so if the tickets aren't deductible, the parking typically wouldn't be either. However, if you're meeting clients at the venue for legitimate business discussions and then leaving (without staying for the game), you might have a stronger argument for deducting transportation costs including parking as a business meeting expense. But that would be pretty hard to document convincingly. Regarding documentation - phone notes probably aren't sufficient for an audit. The IRS wants contemporaneous records showing date, amount, business purpose, and who was entertained. I'd recommend creating a simple spreadsheet or log that tracks each business-related game with client names, business discussed, and receipts. Even better if you can show follow-up emails or contracts that resulted from those meetings. The good news is that entertainment deductions are scrutinized more heavily than other business expenses, so having proper documentation upfront will save you headaches later. Your instinct to be cautious is definitely the right approach!

0 coins

This has been an incredibly informative discussion! As someone who's been struggling with similar entertainment deduction questions, I really appreciate everyone sharing their experiences and knowledge. One thing I haven't seen mentioned yet is the importance of timing when it comes to documentation. I learned the hard way that you need to record the business purpose and details within a reasonable time after the expense occurs - not months later when you're doing your taxes. The IRS considers records made at or near the time of the expense much more credible than reconstructed records. For anyone still dealing with season tickets, I'd also suggest looking into whether your industry has any specific guidance. Some professional associations or trade groups publish best practices for business entertainment that can help you stay compliant while maximizing legitimate deductions. The charitable donation strategy mentioned by @Anastasia Kozlov is brilliant for unused tickets. I've started doing this too and it feels good knowing the tickets are going to help kids who wouldn't otherwise get to attend games, plus you get a legitimate tax benefit. Thanks again to everyone who shared their expertise - this thread is going to save a lot of people from making costly mistakes!

0 coins

Absolutely agree about the timing of documentation! I made that exact mistake in my first year of self-employment - tried to recreate my business meal records in March while doing taxes and it was a nightmare. Now I use a simple app on my phone to snap photos of receipts and record the business purpose immediately after each expense. One additional tip for anyone with season tickets - consider keeping a calendar specifically for business entertainment. I started doing this after reading about a court case where someone successfully defended their entertainment deductions partly because they had detailed calendar entries showing planned business discussions for each event. Even though the tickets themselves aren't deductible anymore, having that level of documentation can be helpful if you're ever questioned about related expenses like meals. @William Schwarz - do you happen to know which professional associations publish those entertainment guidelines? I d'love to check if my industry marketing (consulting has) any specific recommendations.

0 coins

This thread has been incredibly helpful! I'm also a self-employed consultant (financial services) and made the same mistake of thinking I could deduct my baseball season tickets. One thing I want to add that might help others - I discovered that some business credit cards actually categorize sports venue purchases differently for tracking purposes. My Chase Ink card separates out concessions from ticket purchases in their year-end summaries, which made it much easier to identify the legitimate meal portions when I was preparing my taxes. Also, for anyone keeping business entertainment records going forward, I started using a simple voice memo app on my phone right after each client meeting/game. I just record a quick 30-second note with the date, client name, and what business was discussed while it's fresh in my mind. Later I transcribe these into a proper log. It's been way more reliable than trying to remember details weeks later. The charitable donation approach is genius - I had about 8 games I couldn't attend last season and just ate the cost. Definitely doing this going forward. Does anyone know if there are any restrictions on which types of charities can accept ticket donations, or do all 501(c)(3)s qualify?

0 coins

Great tip about the Chase Ink categorization! That makes documentation so much easier. For charitable donations, most 501(c)(3) organizations can accept ticket donations, but some have specific policies about accepting entertainment tickets. Youth sports leagues, Boys & Girls Clubs, and military family support organizations are usually great options since they actively use the tickets for their programs. One quick note on the voice memo approach - that's brilliant for capturing details in the moment! Just make sure you're also getting some kind of written confirmation from your clients about the business nature of your meetings. Even a simple follow-up email saying "thanks for discussing the Q2 marketing strategy at the game" can help substantiate the business purpose if you're ever audited. Also wanted to mention for anyone reading this - if you're using business credit cards for these expenses, many of them offer year-end spending summaries that can be incredibly helpful for tax preparation. Some even integrate with accounting software to automatically categorize expenses, though you still need to manually verify business vs personal use.

0 coins

This has been such an educational thread! As someone who's been doing taxes for small business owners for over 15 years, I want to emphasize a few key points that have come up here. First, the documentation requirements cannot be overstated. The IRS has specific substantiation rules under Section 274 that require you to prove the amount, time/date, place, business purpose, and business relationship for any entertainment-related expense. Even though entertainment itself isn't deductible anymore, these rules still apply to related expenses like meals. For those asking about parking and other ancillary costs - these are generally considered part of the entertainment package and therefore not deductible. However, if you can legitimately separate a business meeting portion from the entertainment portion (like meeting a client for lunch at the stadium restaurant before the game, then parting ways), you might be able to deduct the business meal portion. The charitable donation strategy is excellent for unused tickets, but remember that for donations over $250, you need written acknowledgment from the charity that includes a statement about whether you received any goods or services in return. One last tip: keep a simple business entertainment log template. Date, attendees, business purpose, business discussed, and outcome/follow-up. This contemporaneous record-keeping will save you if you're ever audited.

0 coins

Thank you so much for this professional perspective! As someone new to navigating business deductions, this is exactly the kind of expert guidance I needed. The Section 274 substantiation rules you mentioned are something I definitely need to research further. Your point about separating legitimate business meetings from entertainment is particularly helpful. I've been lumping everything together, but it sounds like there might be opportunities to properly categorize expenses if I'm more strategic about how I structure client meetings around these events. One quick follow-up question - when you mention keeping a "contemporaneous record," how soon after the expense should these records be created? Is documenting everything within 24-48 hours sufficient, or does the IRS expect real-time record keeping? I'm trying to establish a system that's both compliant and practical for my consulting business. Also, do you have any recommendations for business entertainment log templates or apps that work well for your clients? I'm looking to upgrade from my current phone notes system to something more professional and audit-ready. Thanks again for sharing your expertise - this thread has been invaluable for understanding how to properly handle these complex deduction rules!

0 coins

This thread has been absolutely incredible for understanding the current state of entertainment deductions! As a newer member of this community, I really appreciate how everyone has shared their real-world experiences navigating these complex tax rules. I'm a freelance marketing consultant who just started my business last year and was completely confused about what I could and couldn't deduct. The explanation about the Tax Cuts and Jobs Act eliminating most entertainment deductions was eye-opening - I had no idea the rules changed so dramatically in 2018. A few key takeaways I'm walking away with: - Season tickets themselves = not deductible as entertainment - Separately purchased meals at venues = 50% deductible with proper documentation - Unused tickets donated to charity = potential charitable deduction - Documentation needs to be contemporaneous and detailed One question I haven't seen addressed yet - what about networking events at sporting venues? I've been invited to a few "business mixers" that happen to be held at stadium club levels during games. Would the cost of attending these events be treated differently than regular season tickets since they're specifically marketed as business networking opportunities? Also, for those using the charitable donation strategy, do you typically get the charity to provide a receipt showing the fair market value of the tickets, or do you use the face value you originally paid? I want to make sure I'm handling this correctly. Thanks to everyone who's contributed their expertise here - this is exactly the kind of practical tax guidance that's so hard to find elsewhere!

0 coins

Welcome to the community @Alina Rosenthal! Your questions about networking events at sporting venues are really insightful. Generally speaking, if an event is specifically structured as a business networking function (even if held at a stadium), it might be treated differently than regular entertainment. The key factors would be whether the primary purpose is business networking rather than entertainment, and whether the event has a clear business agenda or structured networking component. However, you'd still need to be very careful about documentation and proving the business purpose. The IRS tends to be skeptical of any deductions related to sporting venues, so you'd want rock-solid evidence that it was genuinely a business event rather than entertainment disguised as networking. For charitable donations of tickets, you should generally use the fair market value at the time of donation, which is typically the face value of the tickets (unless there's evidence they're worth significantly more or less). The charity should provide you with a written acknowledgment that includes the date, location, and description of the donation, plus a statement about whether you received anything in return. Your takeaway list is spot-on! The documentation requirement really can't be overstated - it's the difference between a legitimate deduction and a disallowed expense that could trigger penalties in an audit. Great to see someone starting off on the right foot with proper record-keeping from day one!

0 coins

As someone who's been navigating business deductions for my consulting firm, I wanted to add some additional perspective to this excellent discussion. I've actually been through an IRS audit specifically involving entertainment expenses, so I can share some real-world experience about what they actually look for. The documentation requirements everyone has mentioned are absolutely critical, but I learned there's another layer - the IRS agent specifically asked me to demonstrate the "business result" of each claimed expense. It wasn't enough to just show that I met with a client at a meal; they wanted to see evidence that legitimate business was conducted and what came of those discussions. Follow-up emails, contracts signed, project proposals - anything that showed the meeting had a genuine business purpose beyond just relationship building. For the charitable donation strategy with unused tickets, I've found that youth organizations and veteran groups are particularly appreciative and provide excellent documentation. I work with a local youth baseball league that gives me detailed receipts showing the date, number of tickets, face value, and a statement that I received nothing in return. One thing I haven't seen mentioned yet - if you're using these tickets as part of a larger client appreciation program, make sure you're not accidentally creating taxable income for your clients. The IRS could potentially view valuable tickets as gifts that need to be reported, especially if they exceed the $25 business gift limit. Something to discuss with your tax professional if you're giving tickets directly to clients. The tax landscape around business entertainment is definitely more complex now, but with proper documentation and understanding of the current rules, you can still maximize legitimate deductions while staying compliant.

0 coins

This is incredibly valuable insight from someone who's actually been through an audit! The point about demonstrating "business results" is something I never would have thought about. I've been focused on just documenting who I met with and what we discussed, but showing the actual outcomes makes total sense from the IRS perspective. Your mention of the $25 business gift limit is really important too. I hadn't considered that giving tickets directly to clients could create tax implications for them. Would this apply even if I'm attending the game with the client, or only when I'm giving them tickets to use without me? And does the $25 limit apply per ticket or per client per year regardless of how many events they attend with me? The idea of working with youth organizations for ticket donations is great - I imagine they're much more organized about providing proper documentation than some other nonprofits might be. Do you happen to know if there are any tax benefits for the recipients in these cases, or is it purely a deduction for the donor? Thanks for sharing your audit experience - it's exactly this kind of real-world knowledge that helps the rest of us avoid costly mistakes. I'm definitely going to start keeping better records of business outcomes from client meetings, not just the meetings themselves.

0 coins

This thread has been incredibly helpful! I'm a freelance software developer who bought season tickets to our local soccer team last year and was planning to deduct the full $2,400 on my Schedule C. After reading through all these responses, I realize I was about to make a major mistake. The explanation about the Tax Cuts and Jobs Act changes really clarifies why I was getting conflicting information from different sources. It sounds like I need to completely shift my approach and focus on documenting the food and beverage purchases I made separately during client meetings at games. I kept pretty detailed notes about which games I attended with clients and what projects we discussed, but I'm realizing my documentation probably isn't audit-ready. Moving forward, I'm going to implement that contemporaneous record-keeping system several people mentioned - documenting the business purpose, attendees, and follow-up actions immediately after each event. The charitable donation strategy for unused tickets is brilliant! I had 6 games last season where clients canceled or I couldn't find anyone to take with me. Instead of just eating that cost, I could have donated those tickets and at least gotten some tax benefit while helping local kids attend games. One follow-up question - for those who've successfully claimed the 50% meal deduction at sporting venues, do you find that stadium concession receipts provide enough detail for the IRS, or do you need to supplement with additional documentation about what was actually purchased? The receipts from our stadium are pretty basic and don't always itemize food versus merchandise. Thanks to everyone who shared their expertise here - you've probably saved me from a costly audit situation!

0 coins

Welcome to the community @Annabel Kimball! You're absolutely right to reconsider your approach after reading through this discussion. The Tax Cuts and Jobs Act really did change the game for entertainment deductions, and it sounds like you're taking all the right steps to get compliant going forward. Regarding stadium concession receipts, you're smart to be concerned about the level of detail. Basic receipts that just show a total amount aren't ideal for supporting meal deductions. Here are a few strategies that have worked for me: 1. Try to pay separately for food/drinks versus other items like parking or merchandise when possible 2. Keep a simple log noting what you actually purchased (2 beers, nachos, hot dog) along with each receipt so you can justify any allocations 3. Take photos of menu boards showing prices if you need to estimate the food portion of a combined receipt The key is being reasonable and consistent with your allocations. If you're claiming 70% of a $50 receipt was food, that needs to make sense based on stadium pricing. Your plan to implement contemporaneous record-keeping is excellent. I use a simple voice memo app right after client meetings to capture the business discussion while it's fresh, then transcribe into a proper log later. Much more reliable than trying to recreate everything at tax time! And yes, definitely start donating those unused tickets to youth organizations - it's a win-win situation that helps kids while giving you a legitimate deduction. Just make sure to get proper acknowledgment letters from qualified 501(c)(3) organizations.

0 coins

As a newcomer to this community, I'm amazed by the depth of knowledge everyone has shared about entertainment deductions! I'm a freelance graphic designer who just started my business last year and bought season tickets to our local basketball team thinking they'd be fully deductible. After reading through this entire thread, I realize I was completely wrong about the current tax rules. The explanation about the Tax Cuts and Jobs Act eliminating entertainment deductions in 2018 was news to me - I had no idea the landscape had changed so dramatically. I'm particularly grateful for the practical advice about documentation requirements. I've been pretty casual about record-keeping, but it's clear I need to get much more organized if I want to claim any legitimate deductions. The contemporaneous record-keeping system several people mentioned sounds like exactly what I need to implement. The charitable donation strategy for unused tickets is something I never would have considered, but it makes perfect sense. I had several games last season where I couldn't find clients to invite, and I just absorbed the cost. Going forward, I'll definitely donate those tickets to local youth organizations. One quick question - for those who've successfully separated out meal expenses at sporting venues, do you find it's better to use cash for concessions to get clearer receipts, or do credit card statements provide sufficient documentation when combined with a business log? I'm trying to figure out the most audit-friendly approach for tracking these expenses. Thanks to everyone who contributed to this discussion - you've saved me from making some expensive mistakes on my tax return!

0 coins

Welcome to the community @Grace Johnson! It's great to see another freelancer getting their tax situation sorted out early. You're definitely not alone in being surprised by the 2018 tax law changes - a lot of business owners are still catching up on how dramatically the entertainment deduction landscape shifted. Regarding your question about payment methods for concession expenses, I've found that credit cards actually work better than cash for audit documentation purposes. Here's why: credit card statements provide an independent third-party record of the transaction date, amount, and merchant, which the IRS views favorably. Combined with your business log detailing the business purpose and attendees, this creates a strong paper trail. The key is being systematic about your record-keeping regardless of payment method. I use a simple smartphone app to photograph receipts immediately and record voice memos about the business discussion right after each client meeting. Later I transfer everything to a spreadsheet with columns for date, amount, client name, business purpose, and follow-up actions. Your plan to donate unused tickets is smart - youth sports organizations and Boys & Girls Clubs are usually excellent about providing proper acknowledgment letters for tax purposes. Just make sure they're qualified 501(c)(3) organizations. One additional tip: consider setting up a separate business credit card just for these types of client entertainment expenses. It makes year-end categorization much easier and provides cleaner documentation if you're ever audited. Good luck with implementing your new system!

0 coins

This has been such an incredibly helpful discussion! As someone new to self-employment (started my freelance marketing consulting business 6 months ago), I had no idea about the 2018 tax law changes eliminating entertainment deductions. I was literally about to claim my $1,800 in baseball season tickets as a business expense until I found this thread. The breakdown of what's actually deductible versus what isn't is exactly what I needed. So if I understand correctly: the tickets themselves aren't deductible, but if I buy food/drinks separately while entertaining clients, 50% of those meal costs could be deductible with proper documentation? And unused tickets can be donated to charity for a legitimate deduction? I'm definitely going to implement that contemporaneous record-keeping system everyone keeps mentioning. Right now I just have some random notes in my phone, but it sounds like I need a much more systematic approach with dates, business purposes, attendees, and follow-up outcomes all properly documented. One thing I'm curious about - has anyone found good resources for staying updated on these kinds of tax law changes? As a new business owner, I feel like I'm constantly learning about rules I didn't even know existed. This community has been amazing, but I'd love to find some reliable sources for ongoing tax education. Thanks to everyone who shared their expertise here - you've probably saved me from a costly mistake and helped me set up much better systems going forward!

0 coins

Welcome to the community @KingKongZilla! You've got exactly the right understanding - tickets themselves aren't deductible anymore, but separately purchased meals are 50% deductible with proper documentation, and donating unused tickets to qualified charities can give you a legitimate charitable deduction. For staying updated on tax law changes, I'd recommend a few reliable sources: 1. The IRS website (irs.gov) publishes annual updates and guidance - their Publication 535 covers business expenses specifically 2. Subscribe to newsletters from reputable tax software companies like TurboTax or H&R Block - they usually send updates when major changes happen 3. Consider joining professional associations in your industry - many provide tax guidance specific to your field 4. Follow some CPAs on social media who specialize in small business taxes - they often share updates in plain English You're absolutely right about needing a systematic documentation approach. I'd suggest creating a simple template with columns for: Date, Client Name, Business Purpose, Amount Spent on Meals, Receipt Number, and Follow-up Actions. This creates the contemporaneous record trail that holds up well in audits. Since you're just starting out, now is the perfect time to establish good habits. Consider setting up a separate business credit card for client entertainment expenses and maybe use a simple expense tracking app that lets you photograph receipts and add notes on the spot. Great catch on reading this thread before filing - you definitely avoided a costly mistake!

0 coins

This thread has been incredibly educational! As a freelance web developer who's been struggling with similar questions about my Lakers season tickets, I really appreciate everyone sharing their experiences and expertise. The clarification about the 2018 Tax Cuts and Jobs Act changes is exactly what I needed - I had no idea entertainment deductions were essentially eliminated. I was planning to deduct my entire $3,600 season ticket cost, but now I understand I need to focus on the separately purchased meals and drinks when entertaining clients. I'm particularly interested in the documentation strategies people have mentioned. It sounds like I need to get much more systematic about recording the business purpose, attendees, and outcomes of each client meeting - not just that a meeting occurred. One question that hasn't been addressed yet - what about playoff tickets or special event games that cost significantly more than regular season tickets? I bought some playoff tickets last year for $400 each (compared to $120 for regular season) specifically to entertain a major client. Would the same rules apply, or is there any different treatment for these premium-priced games? Also, for the charitable donation strategy with unused tickets, do organizations typically prefer certain types of games (weekend vs weekday, better seats vs upper deck) or are they generally happy to receive any donated tickets? Thanks to everyone who's contributed their knowledge here - this community is an amazing resource for navigating these complex tax situations!

0 coins

Welcome @Freya Andersen! You're asking great questions that show you're really thinking through the implications of these tax rules. For playoff tickets and premium-priced games, the same rules apply unfortunately - the tickets themselves still aren't deductible as entertainment regardless of their cost. Whether you paid $120 or $400 per ticket, the entertainment portion falls under the same Tax Cuts and Jobs Act restrictions. However, if you purchased meals/drinks separately during those premium games, the 50% meal deduction would still apply to those food costs. The higher ticket prices don't change the tax treatment, but they do make proper documentation even more important since the IRS tends to scrutinize larger expenses more closely. Make sure you have rock-solid records showing the legitimate business purpose and outcomes of those expensive client meetings. Regarding charitable donations, most youth organizations and nonprofits are thrilled to receive any tickets! In my experience, they're not picky about seat location or day of the week - they're just grateful for the opportunity to provide kids with experiences they couldn't otherwise afford. Weekend games tend to be easier for families to attend, but weekday games work great for after-school programs. The key is finding qualified 501(c)(3) organizations that will actually use the tickets rather than just resell them. Youth sports leagues, Boys & Girls Clubs, and military family support groups are usually excellent options that provide proper documentation for your tax records. You're smart to get your documentation systems in place now - it'll save you major headaches down the road!

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today