Party With The Employees, At The Governments Expense

Did you know that if you host a picnic for your employees and their families that the IRS will pick up the tab in the way of a business tax deduction? Entertainment costs for your business are tax deductible. Most of these expenses come in the form of 50 percent. For example, if you take a prospective client out to dinner to impress them, you can only claim 50 percent of the cost of doing so on your taxes.

But, having social events for your employees and their families is 100 percent tax deductible. The reason for this is quite simple: they are a direct result of your business and help you to stay in business. Whats more, you do not need to prove that it was to foster a business goal or related to any end result for your employees. Receipts are required, as usual.