Planning a holiday party for your employees? Keep tax deductions in mind. Most entertainment expenses currently aren’t deductible and you can generally deduct 50% of the cost of business meals. But under certain conditions, you can deduct 100% of party costs. The event must be for your entire staff and not be “lavish or extravagant.” Deductible costs include food, beverages, decorations, live music and venue rentals. No deduction is allowed if your staff consists only of family members. Inviting non-employees (other than spouses and significant others) complicates the issue. So before sending out your invitation list, contact us with questions about maximizing your tax deduction. © 2024