Can i deduct sporting event tickets

Although it might be possible to argue otherwise, general seating at a sporting event often is not conducive to conducting business transactions due to the volume of the audience and the distraction of the event.

Therefore, it is recommended that employers either use a more secluded suite without the distractions of general seating or document business transactions that occurred before or after the sporting event. Another issue that arises often with sporting events is whether tickets purchased for family members of employees, clients, or prospects can be deducted. Many businesses also rent luxury suites at sporting events.

Suite rental agreements often include several components such as tickets for admission, advertising expense, food and beverage costs, and fees for use of the suite.

However, the rental agreement often does not break down the rental price into its component parts. Businesses should work with the venue to identify the portion of expenses related to each component. The highest face value of non-luxury box seats may be used in determining this limitation; however, to determine its deduction, a taxpayer may not use the price of seats that are not offered to the public generally and that are available only to a limited group of purchasers.

Any amounts identified as advertising expense should be fully deductible as an ordinary and necessary business expense. Any remaining expense for use of the suite generally is considered a nondeductible expense for the use of an entertainment facility.

Finally, tickets purchased for family members of employees, clients, or prospects can be deducted…as long as it is your spouse, because Regs. Share this blog:. We get paid to keep up on the latest financial news. Tax Insights. September 10, June 13, Ok, you are now ready for the game. Deducting the Cost of Tickets to Theater or Sporting Events Theater or sporting event tickets purchased for business associates are treated as an entertainment expense provided you accompany your associates to the event.

If you don't attend the event, you don't satisfy the " directly related " test. However, if you have a business discussion before or after the event you would satisfy the " associated test ".

Keep in mind, to claim the entertainment deduction you must satisfy either the "directly related" test or the "associated" test. 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 Occurred directly before or after a substantial business discussion, which means, 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.

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