With Super Bowl LII less than two weeks away, and ticket prices predicted to set new records, many business owners may be asking themselves if their business can purchase tickets and deduct the entertainment expense.
Prior to the passage of P.L. 115-97 into law (the “Act”), employers were permitted to deduct 50% of entertainment, amusement or recreational expenses, like Super Bowl tickets, if they established that the activity was directly related to the employer’s trade or business.
Under the Act, this deduction has been repealed and no deduction is allowed for entertainment, amusement or expenses, regardless of whether the expense is directly related to the active conduct of the employer’s trade or business.
This unwelcome news for football fans is just one of the many changes made to the tax code under the Act. If you would like additional information about the impact tax reform will have on you or your business, please contact Mariel Giletto or Kathleen O’Brien at 856.596.8900.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.