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As a New Yorker, I am thrilled for our local champs! 🏀🗽🎉 …and while it would make perfect sense to invite your favorite client to a game for so many reasons—building relationships 🤝, showing appreciation 🙌, networking 💼, and simply enjoying a great evening together—the deduction for those tickets is just not in the cards 🎟️❌…or the IRS code anymore.

Unfortunately, entertainment expenses like sporting event tickets are no longer deductible under the IRS rules.

As part of the Tax Cuts and Jobs Act (TCJA), effective January 1, 2018, tickets to sporting events and other entertainment activities are generally no longer deductible as a business expense. 🎟️🚫  However, if you love the hot dogs 🌭, fries 🍟, pretzels 🥨, peanuts 🥜, and other food and beverages purchased at the game, those expenses may still qualify as deductible business meals. 🍽️💼  Of course, you must follow the IRS guidelines and document everything properly. 📝✅ If the requirements are met, you may still be able to deduct 50% of eligible meal expenses purchased from the vendors at the event.

What Does the IRS Say? 📚⚖️

According to the IRS guidance regarding the Tax Cuts and Jobs Act:

🔹 The TCJA generally eliminated the deduction for expenses related to activities considered entertainment, amusement, or recreation. 🎭🎟️🏀

🔹 Taxpayers may continue to deduct 50% of the cost of business meals if:

• 👤 The taxpayer (or an employee of the taxpayer) is present.
• 🍽️ The food and beverages are not considered lavish or extravagant.
• 🤝 The meals are provided to a current or potential business customer, client, consultant, or similar business contact.

🔹 If food and beverages are provided during or at an entertainment activity:

• 🧾 The food and beverages must be purchased separately from the entertainment, or
• 📋 The cost of the food and beverages must be stated separately from the entertainment costs on one or more bills, invoices, or receipts.

🔹 📖 Notice 2018-76 provides additional information regarding these changes.  IRS code section: Section 162(a) Section 274(k)

Final Thoughts ✨ If you are concerned about making the most of your business expenditures, it may be time to approach them differently. 💡 Understanding what qualifies as an ordinary and necessary business expense ✅ and what may not be deductible ❌ can help you make smarter business decisions—even when an expense may still make good business sense.

👉 Seems like this is another call to action, no more wishful thinking, let’s not say “I wish I had…”,  and as always…

Feel free to search our website for some of our complementary resources or get in touch:  Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.  Use our search box🔎for those posts specific to tax minimization, business planning, business best practices, casualty losses, etc. and see what “pop’s” up.