There’s nothing quite as exciting as going to a sporting event. Over the years, many businesses have found that this is a great opportunity to network and show appreciation to clients. However, before you start buying seats for 2019’s biggest games, there are some things you should know. Business tax preparation services like Martinson & Carter are staying up-to-date with the latest changes to the tax code. As it turns out, the 2018 tax reform laws have changed the way these business purchases are treated. Here’s some information that may be helpful as you try to understand these regulations.
The old rules for deducting sporting event tickets
Many businesses loved the idea of giving sporting tickets out to their clients and employees. Not only did it create a relaxed and fun setting for business meetings, but it also had other advantages. Transportation, face value tickets, and skybox expenses were each 50% deductible. You could also take a 50% deduction for club expenses, such as for business and recreation services. Businesses who made contributions for sporting event tickets tied to educational institutions could deduct 80%. Finally, buying tickets for charities could be 100% deductible.
The rules for deducting sporting event tickets have changed
There are some significant changes in the new tax reform relating to sports tickets. As the law is currently written, transportation, club visits, charitable, and educational contributions for sporting events are no longer deductible. This makes it harder for businesses to get tax benefits while entertaining current and potential clients. While this is no longer an option, there are other ways for you to deduct business expenses. Each company is different, so it’s important that you meet with a business tax preparation service to learn about your options.
Don’t wait to get help when it comes to tax reform and your business. Contact a business tax preparation service in Rock Hill, SC like Martinson & Carter CPAs. Our team is ready to help you make sense of all the changes to the tax code.