If a business buys two football season corporate box tickets, and takes a client, the VAT isn鈥檛 recoverable andnor is the corporation tax deductible, because it is business entertainment. If it is used for employee entertainment, then the VAT is recoverable and it is an allowable expense for corporation tax purposes.
People also ask
How much is the tax deduction for NFL season tickets?
He would be entitled to a charitable deduction of $8,000 (80 percent of the $10,000 pre-ticket purchase donation), which at the top tax bracket of 37 percent is worth $2,960. Thus, under Section 170 (l), the football fan receives a $2,960 subsidy for the season tickets. New Law.
Are season tickets tax deductible?
However, it does not meet IRS rules for deductibility. Ask us how to structure the use of your season tickets to ensure they are tax deductible. In a different scenario, imagine that the top client was actually your top employee. And, you had already purchased those same 2 season tickets.
Are sports tickets tax deductible for clients?
This scenario allows you to give your sports tickets to your employee and it now meets the rules for tax deductibility. Sometimes, IRS rules don鈥檛 follow logical sense. Why would a purchase for a client NOT be deductible while the employee purchase sports tickets ARE deductible? Ask us how. Did you know?
Can I claim a donation to a football team as a deduction?
When the Tax Cuts and Jobs Act was passed, it repealed that rule. Instead of claiming 80 percent of the donation for the PSL as a deduction, taxpayers cannot claim any of the donation as a deduction beginning with tax year 2018. So, what if your client still wants to support their alma mater鈥檚 football team and get a tax deduction?