Tax Compliance Checklist
|IRS 274: The Deductibility of Tickets and Entertainment|
|Type of Use||Deduction||Example|
|Standard ticket given to an employee on a non-discriminatory basis||100% of face value is deductible||Providing tickets to employees|
|Standard ticket given to a customer or prospective customer for business purposes||50% of face value is deductible||Giving tickets to a current customer as a “Thank You” or inviting them to an event to discuss business|
|Luxury suite ticket given to an employee on a non-discriminatory basis||100% of face value of a comparable lower level seat||Providing a luxury suite ticket to an employee allows for a deduction up to the face value of a comparable lower level seat, usually a club seat or front row ticket|
*This information is provided for educational purposes only and is not guaranteed or warranted to be accurate or complete. Please consult your tax professional to confirm any expected tax benefits and ensure compliance with IRS regulations. Please contact us if you would like an introduction to the Deloitte Travel, Meals & Entertainment Tax Practice Leader.