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Amended Tax Form 1040x

How To Do Back Taxes1040ez Form OnlineWhere Can I File State Taxes For FreeHow To File Irs Form 1040xFree FileHow Do I File My 2012 Taxes NowTaxslayer 2011H And R BlockWww Myfreetaxes Com SwfloridaFree 1040x Tax FormsTaxes H&r BlockFile A Tax AmendmentTax Filing For 2012Free File State TaxFree State Tax Only E FilingFree E File Tax ReturnIrs Form 1040xFile Federal And State Taxes For FreeWhere To File My 2012 Federal Tax ReturnHow To File A 2012 Tax ReturnWho Can Use 1040ez FormHow To Amend Taxes OnlineTurbo Tax 20081040 Ez 2010 FormFree File State TaxFile A 2010 Tax ReturnTax Act 2010 Download2010 Amended Tax ReturnWhen Amend Tax ReturnDo College Students Have To File TaxesCollege Student Tax ReturnState Income TaxesDo Taxes Online 2010Hand R Block Free FileHr Block 1040x2011 Federal Tax FormsAmended State Tax FormsH&r BlaockFile 2012 TaxesAmendments

Amended Tax Form 1040x

Amended tax form 1040x Index A Assessment of tax, Assessment of tax. Amended tax form 1040x Assistance (see Tax help) B Bankruptcy Code tax compliance, Bankruptcy Code Tax Compliance Requirements Returns due after filing, Tax Returns Due After the Bankruptcy Filing Returns due before chapter 13 filing, Tax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases Bankruptcy estate, Taxes and the Bankruptcy Estate Attribute carryovers, Carrybacks from the debtor's activities. Amended tax form 1040x Carrybacks, Carrybacks from the debtor's activities. Amended tax form 1040x Disclosure of return information, Disclosure of bankruptcy estate's return information to debtor. Amended tax form 1040x Employer identification number, Employer identification number. Amended tax form 1040x , Employer identification number. Amended tax form 1040x Estimated tax, Estimated tax – Form 1041-ES. Amended tax form 1040x Return filing requirements, Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Separate taxable entity, Separate taxable entity. Amended tax form 1040x Transfer of assets, Transfer of assets between debtor and bankruptcy estate. Amended tax form 1040x C Conversion or dismissal chapter 11 case, Conversion or dismissal of chapter 11 cases. Amended tax form 1040x Corporations, Corporations Filing requirements, Corporations Tax-free reorganizations, Tax-Free Reorganizations D Debt cancellation, Debt Cancellation Bankruptcy exclusion, Bankruptcy case exclusion. Amended tax form 1040x Corporations, Corporations Insolvency exclusion, Insolvency exclusion. Amended tax form 1040x Partnerships, Partnerships S corporations, S Corporations Deductions and credits, Bankruptcy Estate Deductions and Credits Administrative expenses, Administrative expenses. Amended tax form 1040x Discharge of tax, Discharge of Unpaid Tax Disclosure of return information, Disclosure of debtor's return information to trustee. Amended tax form 1040x , Disclosure of return information to trustee. Amended tax form 1040x Dismissal of case Amended return, Dismissal of bankruptcy case. Amended tax form 1040x E Election to end tax year: Form 1040, Debtor's Election To End Tax Year – Form 1040 Annualizing taxable income, Annualizing taxable income. Amended tax form 1040x Election by spouse, Election by debtor's spouse. Amended tax form 1040x Filing requirements, Making the Election - Filing Requirements Short tax years, Short tax years. Amended tax form 1040x Employment taxes, Employment taxes. Amended tax form 1040x , Employment Taxes Examination of return, Examination of return. Amended tax form 1040x F Free tax services, How To Get Tax Help H Help (see Tax help) I Individuals in Chapter 12 or 13, Individuals in Chapter 12 or 13 Individuals in Chapter 7 or 11, Individuals in Chapter 7 or 11 Gross income chapter 11 case, Income of the estate in individual chapter 11 cases. Amended tax form 1040x Gross income chapter 7 case, Income of the estate in individual chapter 7 cases. Amended tax form 1040x J Jurisdiction over tax matters, Court Jurisdiction Over Tax Matters Bankruptcy Court, Bankruptcy Court Tax Court, Tax Court M More information (see Tax help) O Ordering tax return transcripts, Ordering tax transcripts and copies of returns. Amended tax form 1040x P Partnerships, filing requirements, Partnerships Payment of tax claim, Federal Tax Claims Eighth priority taxes, Unsecured Tax Claims Second, third, fourth priority taxes, Higher priority taxes. Amended tax form 1040x Secured tax claims, Secured tax claims. Amended tax form 1040x Penalties, Penalties. Amended tax form 1040x Relief from penalties, Relief from certain penalties. Amended tax form 1040x Publications (see Tax help) R Request for prompt tax determination, Prompt Determination Requests Request for refund, Requests for refund or credit S Statute of limitations collections, Statute of limitations for collection. Amended tax form 1040x T Tax attributes, Reduction of Tax Attributes Basis reduction, Basis. Amended tax form 1040x , Basis Reduction Carryovers, Attribute carryovers. Amended tax form 1040x Order of reduction, Order of reduction. Amended tax form 1040x Reduction of, Reduction of Tax Attributes Tax help, How To Get Tax Help Tax reporting chapter 11 cases, Tax Reporting – Chapter 11 Cases Employment tax returns, Tax Reporting – Chapter 11 Cases Information returns, Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Amended tax form 1040x Self-employment taxes, Self-employment taxes in individual chapter 11 cases. Amended tax form 1040x Wage reporting, tax withholding, Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Amended tax form 1040x Tax return: Form 1041, Figuring tax due. Amended tax form 1040x Figuring tax due, Filing Requirements Payment of tax due, Payment of Tax Due When to file, When to file. Amended tax form 1040x Taxpayer Advocate, Taxpayer Advocate Service. Amended tax form 1040x TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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Se Pudiera Estar Terminando el Plazo – Marzo 31 Es Una Fecha Importante

Consideraciones de La Ley del Cuidado de Salud para 2014

 

HC-TT-2014-11SP

Para la mayoría de personas, la Ley de Cuidado de Salud a Bajo Precio no afecta las declaraciones de impuestos por ingresos de 2013 que están presentando en 2014. Sin embargo, algunas personas pudieran tener que tomar decisiones importantes para el 31 de marzo de 2014, la fecha límite para la matrícula abierta. 

A continuación hay cinco cosas acerca de la ley del cuidado de salud que usted pudiera tener que tomar en consideración pronto.

  •  Asegurado Actualmente – Sin Cambio: Si usted está asegurado actualmente no necesita hacer nada más que seguir con su seguro.

  • No Está Asegurado – Regístrese para el 31 de Marzo: El periodo de matricula abierta para comprar cobertura de seguro médico a través del Mercado de Seguros de Salud para 2014 continua hasta el 31 de marzo de 2014. Cuando usted obtiene seguro médico a través del mercado, usted pudiera tener disponibles pagos adelantados del crédito tributario de primas que le ayudarán a reducir de inmediato sus primas mensuales. Infórmese en CuidadoDeSalud.gov.

  • Crédito Tributario de Primas para Reducir Su Prima Mensual: Si usted obtiene seguro a través del Mercado, usted pudiera ser elegible para reclamar el crédito tributario de primas. Usted puede elegir que pagos adelantados del crédito tributario sean enviados directamente a su asegurador durante el 2014, o esperar a reclamar el crédito al presentar su declaración de impuestos en el 2015. Si usted elije que se envíen pagos adelantados a su asegurador, usted tendrá que reconciliar los pagos en su declaración de impuestos de 2014, la cual será presentada en 2015. Si usted ya está recibiendo pagos adelantados del crédito, no tendrá que hacer nada por el momento a menos que haya un cambio en sus circunstancias. Obtenga más información.

  • Cambio de Circunstancias: Si está recibiendo pagos adelantados del crédito tributario de primas para ayudarle a pagar por su cobertura de seguro médico, usted debería reportar los cambios en su vida, tales como cambios en sus ingresos, estado civil o en el tamaño de su familia, al Mercado. Reportar los cambios le ayudará a cerciorarse de que está recibiendo la cantidad adecuada en pagos por adelantado del crédito tributario de primas.

  • Pagos de Responsabilidad Compartida para Individuos: A partir de enero de 2014, usted y su familia han tenido el requisito de tener cobertura de seguro médico o tener una exención de cobertura.  La mayoría de personas ya tiene cobertura de seguro médico calificada. Estas personas no tendrán que hacer nada más que mantener esa cobertura a lo largo de 2014. Si usted puede costear cobertura pero decide no comprarla y permanecer sin seguro, usted podría tener que efectuar un pago de responsabilidad compartida para personas físicas al presentar su declaración de impuestos en el 2015. Obtenga más información.

 

Información Adicional

Infórmese sobre las disposiciones tributarias de la ley del cuidado de salud en IRS.gov/aca (español). 

Infórmese sobre el Mercado de Seguros de Salud en CuidadoDeSalud.gov.

Para recibir por email copias de los consejos tributarios del IRS en inglés, suscríbase en www.irs.gov/uac/Subscribe-to-IRS-Tax-Tips. Para los consejos tributarios del IRS en español visite IRS.gov.

 

Page Last Reviewed or Updated: 24-Mar-2014

The Amended Tax Form 1040x

Amended tax form 1040x 2. Amended tax form 1040x   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. Amended tax form 1040x 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. Amended tax form 1040x Deduction may depend on your type of business. Amended tax form 1040x Exception for events that benefit charitable organizations. Amended tax form 1040x Food and beverages in skybox seats. Amended tax form 1040x What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. Amended tax form 1040x You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Amended tax form 1040x The rules and definitions are summarized in Table 2-1 . Amended tax form 1040x You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. Amended tax form 1040x Directly-related test. Amended tax form 1040x Associated test. Amended tax form 1040x Both of these tests are explained later. Amended tax form 1040x An ordinary expense is one that is common and accepted in your trade or business. Amended tax form 1040x A necessary expense is one that is helpful and appropriate for your business. Amended tax form 1040x An expense does not have to be required to be considered necessary. Amended tax form 1040x The amount you can deduct for entertainment expenses may be limited. Amended tax form 1040x Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Amended tax form 1040x This limit is discussed later under 50% Limit. Amended tax form 1040x Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. Amended tax form 1040x Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. Amended tax form 1040x Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. Amended tax form 1040x See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. Amended tax form 1040x You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. Amended tax form 1040x It is not necessary to devote more time to business than to entertainment. Amended tax form 1040x However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. Amended tax form 1040x Table 2-1. Amended tax form 1040x When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Amended tax form 1040x Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Amended tax form 1040x An ordinary expense is one that is common and accepted in your trade or business. Amended tax form 1040x A necessary expense is one that is helpful and appropriate. Amended tax form 1040x Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Amended tax form 1040x   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. Amended tax form 1040x Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Amended tax form 1040x You cannot deduct expenses that are lavish or extravagant under the circumstances. Amended tax form 1040x You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). Amended tax form 1040x You do not have to show that business income or other business benefit actually resulted from each entertainment expense. Amended tax form 1040x Clear business setting. Amended tax form 1040x   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. Amended tax form 1040x The following situations are examples of entertainment in a clear business setting. Amended tax form 1040x Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. Amended tax form 1040x Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). Amended tax form 1040x Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. Amended tax form 1040x An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. Amended tax form 1040x Expenses not considered directly related. Amended tax form 1040x   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. Amended tax form 1040x The following are examples of situations where there are substantial distractions. Amended tax form 1040x A meeting or discussion at a nightclub, theater, or sporting event. Amended tax form 1040x A meeting or discussion during what is essentially a social gathering, such as a cocktail party. Amended tax form 1040x A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. Amended tax form 1040x Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. Amended tax form 1040x To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). Amended tax form 1040x Associated with trade or business. Amended tax form 1040x   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. Amended tax form 1040x The purpose may be to get new business or to encourage the continuation of an existing business relationship. Amended tax form 1040x Substantial business discussion. Amended tax form 1040x   Whether a business discussion is substantial depends on the facts of each case. Amended tax form 1040x A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. Amended tax form 1040x   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. Amended tax form 1040x It is not necessary that you devote more time to business than to entertainment. Amended tax form 1040x You do not have to discuss business during the meal or entertainment. Amended tax form 1040x Meetings at conventions. Amended tax form 1040x   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. Amended tax form 1040x However, your reason for attending the convention or meeting must be to further your trade or business. Amended tax form 1040x The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. Amended tax form 1040x Directly before or after business discussion. Amended tax form 1040x   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. Amended tax form 1040x   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. Amended tax form 1040x Among the facts to consider are the place, date, and duration of the business discussion. Amended tax form 1040x If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. Amended tax form 1040x Example. Amended tax form 1040x A group of business associates comes from out of town to your place of business to hold a substantial business discussion. Amended tax form 1040x If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. Amended tax form 1040x The expense meets the associated test. Amended tax form 1040x 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Amended tax form 1040x (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Amended tax form 1040x See Individuals subject to “hours of service” limits , later. Amended tax form 1040x ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Amended tax form 1040x Figure A summarizes the general rules explained in this section. Amended tax form 1040x The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Amended tax form 1040x Included expenses. Amended tax form 1040x   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Amended tax form 1040x However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Amended tax form 1040x Figure A. Amended tax form 1040x Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Amended tax form 1040x See Exceptions to the 50% Limit . Amended tax form 1040x Please click here for the text description of the image. Amended tax form 1040x Figure A. Amended tax form 1040x Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. Amended tax form 1040x   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. Amended tax form 1040x   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Amended tax form 1040x It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. Amended tax form 1040x It also applies to the cost of meals included in deductible educational expenses. Amended tax form 1040x When to apply the 50% limit. Amended tax form 1040x   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Amended tax form 1040x You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. Amended tax form 1040x Example 1. Amended tax form 1040x You spend $200 for a business-related meal. Amended tax form 1040x If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Amended tax form 1040x Your deduction cannot be more than $45 (50% × $90). Amended tax form 1040x Example 2. Amended tax form 1040x You purchase two tickets to a concert and give them to a client. Amended tax form 1040x You purchased the tickets through a ticket agent. Amended tax form 1040x You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Amended tax form 1040x Your deduction cannot be more than $80 (50% × $160). Amended tax form 1040x Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Amended tax form 1040x Figure A can help you determine if the 50% limit applies to you. Amended tax form 1040x Expenses not subject to 50% limit. Amended tax form 1040x   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Amended tax form 1040x 1 - Employee's reimbursed expenses. Amended tax form 1040x   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Amended tax form 1040x Accountable plans are discussed in chapter 6. Amended tax form 1040x 2 - Self-employed. Amended tax form 1040x   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. Amended tax form 1040x You have these expenses as an independent contractor. Amended tax form 1040x Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. Amended tax form 1040x You provide adequate records of these expenses to your customer or client. Amended tax form 1040x (See chapter 5 . Amended tax form 1040x )   In this case, your client or customer is subject to the 50% limit on the expenses. Amended tax form 1040x Example. Amended tax form 1040x You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. Amended tax form 1040x You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. Amended tax form 1040x If the client can deduct the expenses, the client is subject to the 50% limit. Amended tax form 1040x If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. Amended tax form 1040x 3 - Advertising expenses. Amended tax form 1040x   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. Amended tax form 1040x For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. Amended tax form 1040x 4 - Sale of meals or entertainment. Amended tax form 1040x   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. Amended tax form 1040x For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. Amended tax form 1040x 5 - Charitable sports event. Amended tax form 1040x   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. Amended tax form 1040x For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. Amended tax form 1040x Individuals subject to “hours of service” limits. Amended tax form 1040x   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Amended tax form 1040x The percentage is 80%. Amended tax form 1040x   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Amended tax form 1040x Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Amended tax form 1040x Interstate truck operators and bus drivers who are under Department of Transportation regulations. Amended tax form 1040x Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Amended tax form 1040x Certain merchant mariners who are under Coast Guard regulations. Amended tax form 1040x What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Amended tax form 1040x Entertainment. Amended tax form 1040x   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Amended tax form 1040x Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. Amended tax form 1040x   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. Amended tax form 1040x A meal as a form of entertainment. Amended tax form 1040x   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Amended tax form 1040x A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Amended tax form 1040x To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Amended tax form 1040x    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Amended tax form 1040x    Meals sold in the normal course of your business are not considered entertainment. Amended tax form 1040x Deduction may depend on your type of business. Amended tax form 1040x   Your kind of business may determine if a particular activity is considered entertainment. Amended tax form 1040x For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. Amended tax form 1040x This is because fashion shows are typical in your business. Amended tax form 1040x But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. Amended tax form 1040x Separating costs. Amended tax form 1040x   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Amended tax form 1040x You must have a reasonable basis for making this allocation. Amended tax form 1040x For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Amended tax form 1040x Taking turns paying for meals or entertainment. Amended tax form 1040x   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Amended tax form 1040x Lavish or extravagant expenses. Amended tax form 1040x   You cannot deduct expenses for entertainment that are lavish or extravagant. Amended tax form 1040x An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Amended tax form 1040x Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Amended tax form 1040x Allocating between business and nonbusiness. Amended tax form 1040x   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. Amended tax form 1040x You can deduct only the business part. Amended tax form 1040x If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. Amended tax form 1040x Example. Amended tax form 1040x You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. Amended tax form 1040x Only 4/11 of the expense qualifies as a business entertainment expense. Amended tax form 1040x You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. Amended tax form 1040x Trade association meetings. Amended tax form 1040x   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Amended tax form 1040x These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Amended tax form 1040x Entertainment tickets. Amended tax form 1040x   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Amended tax form 1040x For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Amended tax form 1040x Exception for events that benefit charitable organizations. Amended tax form 1040x   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. Amended tax form 1040x You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. Amended tax form 1040x The event's main purpose is to benefit a qualified charitable organization. Amended tax form 1040x The entire net proceeds go to the charity. Amended tax form 1040x The event uses volunteers to perform substantially all the event's work. Amended tax form 1040x    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. Amended tax form 1040x Example 1. Amended tax form 1040x You purchase tickets to a golf tournament organized by the local volunteer fire company. Amended tax form 1040x All net proceeds will be used to buy new fire equipment. Amended tax form 1040x The volunteers will run the tournament. Amended tax form 1040x You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. Amended tax form 1040x Example 2. Amended tax form 1040x You purchase tickets to a college football game through a ticket broker. Amended tax form 1040x After having a business discussion, you take a client to the game. Amended tax form 1040x Net proceeds from the game go to colleges that qualify as charitable organizations. Amended tax form 1040x However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. Amended tax form 1040x Skyboxes and other private luxury boxes. Amended tax form 1040x   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. Amended tax form 1040x   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. Amended tax form 1040x For example, renting a skybox for a series of playoff games is considered renting it for more than one event. Amended tax form 1040x All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. Amended tax form 1040x   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. Amended tax form 1040x Example. Amended tax form 1040x You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. Amended tax form 1040x The cost of regular nonluxury box seats at each event is $30 a seat. Amended tax form 1040x You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). Amended tax form 1040x Food and beverages in skybox seats. Amended tax form 1040x   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. Amended tax form 1040x The amounts separately stated for food and beverages must be reasonable. Amended tax form 1040x You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. Amended tax form 1040x What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Amended tax form 1040x Club dues and membership fees. Amended tax form 1040x   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Amended tax form 1040x This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. Amended tax form 1040x   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Amended tax form 1040x You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Amended tax form 1040x Entertainment facilities. Amended tax form 1040x   Generally, you cannot deduct any expense for the use of an entertainment facility. Amended tax form 1040x This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Amended tax form 1040x   An entertainment facility is any property you own, rent, or use for entertainment. Amended tax form 1040x Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Amended tax form 1040x Out-of-pocket expenses. Amended tax form 1040x   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Amended tax form 1040x These are not expenses for the use of an entertainment facility. Amended tax form 1040x However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. Amended tax form 1040x Expenses for spouses. Amended tax form 1040x   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. Amended tax form 1040x However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. Amended tax form 1040x Example. Amended tax form 1040x You entertain a customer. Amended tax form 1040x The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. Amended tax form 1040x The customer's spouse joins you because it is impractical to entertain the customer without the spouse. Amended tax form 1040x You can deduct the cost of entertaining the customer's spouse. Amended tax form 1040x If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. Amended tax form 1040x Gift or entertainment. Amended tax form 1040x   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Amended tax form 1040x However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. Amended tax form 1040x   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Amended tax form 1040x You can treat the tickets as either a gift or entertainment, whichever is to your advantage. Amended tax form 1040x   You can change your treatment of the tickets at a later date by filing an amended return. Amended tax form 1040x Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. Amended tax form 1040x   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Amended tax form 1040x You cannot choose, in this case, to treat the tickets as a gift. Amended tax form 1040x Prev  Up  Next   Home   More Online Publications