5 Steps to Party with Your Team and Deduct 100% of the Costs on Your Taxes 🎉💰🤑
Are you looking to throw a party for your team but concerned about the costs? Did you know that you can still party with your team and deduct 100% of the costs on your taxes? Here are five steps to ensure you are taking advantage of this incredible tax deduction:
- Know the rules 🤔💡 Make sure you know the rules that give you the 100% deduction for employee entertainment. For instance, feeding your employees during a training program qualifies for a 50% deduction, while certain types of entertainment qualify for the full 100% deduction.
- Types of entertainment 🎊🎉 The IRS says that entertainment such as holiday parties, annual picnics, and summer outings qualify for the 100% employee entertainment tax deduction. Maintaining a swimming pool, baseball diamond, bowling alley, or golf course are examples of activities that qualify for the 100% deduction.
- Who are the employees? 🤝👥👪 The entertainment expenses must primarily benefit employees other than the tainted group. The tainted group consists of a highly compensated employee, anyone who owns at least a 10% interest in your business, or any family member of a 10% owner.
- “Primary” means “more than 50%” 💯 In tax law, the words “primary” and “primarily” mean “more than 50%.” In the case of a party, most attendees should come from the untainted employee group to qualify for the 100% deduction.
- Document everything 📝📊 Keep records that prove the uses of your entertainment facility, such as the number of employees, time of use, or any other reasonable method that proves the untainted employee group’s primary use of the facility.
Don’t wait to take advantage of this incredible tax deduction! Book Your Free Tax and Financial Assessment today with Palma Financial Services to learn more about maximizing your tax benefits and achieving your financial goals. 🎉💰🤑