I Have a Quick Question… Can It Really Be a Deductible Business Expense Even If the Event Is Fun?🥳
Great question! While there are no quick answers — and we always say “it depends” and “it’s not quick or easy” — you may find opportunities where a business event can be both fun 🥳 and deductible 🏢.
We’ve all heard the phrase “don’t mix business with pleasure,” but why not? Sometimes mixing the two leads to stronger business relationships, new opportunities… and yes, a legitimate business deduction.
This week, I attended a networking event in Soho — a collaboration between two law firms — hosted inside a stylish boutique that designs custom women’s business clothing.
It checked every fun-and-productive box:
✨ Smart, successful professional women
🥂 Early-evening networking
🍢 Delicious hors d’oeuvres
👜 A unique venue that sparked conversation
I already knew and respected the attorneys from this firm; we’ve helped each other’s clients, and our collaboration has always been beneficial. Seeing them in person — plus meeting new specialists — strengthened those connections.
A train ride 🚆, a short walk 🚶♀️, some snacks 🍤, engaging conversation, and new LinkedIn connections… a great night and a legitimate business activity.
So… Is it deductible? YES — with proper documentation.
Here’s how to keep it clean and compliant:
✅ When a Fun Event Can Be a Deductible Business Expense
Under IRC §162, taxpayers may deduct “ordinary and necessary” expenses paid or incurred in carrying on a trade or business.
To help support that deduction, make sure to:
📌 Document Your Purpose
What was the business goal?
Who did you meet or reconnect with?
How does this event relate to current or potential business?
📌 Save Your Proof
Keep the receipt and event invitation (digital or paper)
Log the date, location, host, and purpose
Note the cost of travel, entry fee, or incidental expenses
📌 Track Your Contacts
Collect business cards
Write short notes on the back to remind yourself of the conversation
Connect with attendees on LinkedIn and relevant social platforms
Schedule follow-ups where appropriate
✨ Final Thoughts: Fun and deductible can go together — you just need to make sure the business purpose is clear, the documentation is solid, and the expense fits the ordinary and necessary standard of IRC §162. Ensure It’s Truly Business-Related: Ask yourself would another professional in my field consider this a legitimate business activity? If yes check with your accounting professional, you’re closer to a deductible event.
🚀Seems like this is another call to action, no 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. . Here’s a link to other blog posts.