The associated test is met if: The meal or Telephone Number List entertainment is associated with the active conduct or your trade or business. The meal or entertainment directly precedes or follows a substantial business discussion. In general, you can deduct Telephone Number List only 50% of business related meal and entertainment expenses.
Therefore if you receive one bill, which Telephone Number List includes the costs of meals, lodging, transportation, etc., you must allocate the expenses between the cost of meals and entertainment, and the cost of the other services. If you gave away Telephone Number List tickets to an entertainment event, you can deduct only the face value of the tickets. If you gave a customer tickets and did not accompany Telephone Number List the customer to the event, you can treat the cost of the tickets as either an entertainment or a gift expense, whichever is to your advantage.
Business gift expenses If the nature of your job Telephone Number List requires you to give gifts to customers, the cost Telephone Number List of gifts given directly or indirectly to a customer is deductible up to a maximum limit. The following rules apply to gifts: You cannot deduct a gift of more than $25 per person (incidental costs, such as Telephone Number List engraving on jewelry, or packaging and mailing, are not included in determining the cost of the gift.