Maxine Aaronson, Attorney at Law
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Tax Newsletter

  • One-Time Deduction for Business Furniture & Equipment
    Under certain circumstances, you may be able to take a one-time deduction for certain business furniture and equipment purchased during a particular tax year. This is commonly referred to as a Section 179 deduction. Why... Read more.
  • Participation in Flexible Spending Accounts
    To provide some relief from rising health care and dependent care costs, federal tax laws authorize the establishment of “flexible spending accounts” (FSAs), sometimes known as “flexible reimbursement accounts.”... Read more.
  • Donations of Property and Tax Deductions
    The U.S. government has long encouraged citizens to contribute to charity. One method of encouraging philanthropic giving is the allowance of deductions from income for federal tax purposes for donations to “qualified”... Read more.
  • Affixing a Value on an Estate
    Assets owned by a person at the time of their death, whether real or personal property, is commonly referred to as the decedent’s “estate.” After the person dies, the property or proceeds from the sale of such property... Read more.
Tax News Links

Deducting More than 50% for Certain Business Expenses

In most cases, you can deduct no more than 50% of certain unreimbursed business-related meals and entertainment expenses on your income tax return. This limit applies to employees or their employers, and to the self-employed.

Exceptions

However, you may be able to deduct more than 50% of an expense if it meets one of the following exceptions:

  • Your employer reimburses you for the expense under an accountable plan
  • Your business entails the sales of meals or a form of entertainment
  • The expense is for a charitable sporting event
  • The expense is for advertising
  • You are self-employed

Self-Employment

If you are self-employed, you may be exempt from the 50% limit if:

  • Your expenses are because you are an independent contractor
  • Your client reimburses you for your expenses
  • You provide adequate records of these expenses to your customer or client

You must meet all three of these requirements in order to be exempt from the 50% limit rule.

Entertainment Tickets

Usually, you cannot deduct more than the face value of a ticket that you claim as an entertainment expense. You cannot deduct service fees or any amount over the face value that you may have paid a scalper.

However, if the ticket is for a sports event that benefits a charitable organization, you may consider the full cost of the ticket, even if it is more than face value, if:

  • The event’s main purpose is to benefit a qualified charitable organization
  • Entire net proceeds go to the charity
  • The event uses volunteers to perform substantially all the event’s work