Deducting Tickets to Sporting Events

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by Clarissa M. McCoy, Gordon Advisors, P.C., 248 952 0200

Baseball is in it’s post season, college and pro football season is grinding away and pro basketball and hockey seasons are just starting!  There are a lot of opportunities for companies to take clients, and prospects to many of these games and often companies wonder if they can deduct these sporting event tickets as a business expense, and if so, how to do it correctly.

If you want to deduct as a business expense, the company must meet several conditions.  First, the sporting event must serve a purpose where the parties are there to conduct business.  That means at the sporting event, the parties must engage in a business meeting, negotiation, discussion or transaction.  Also an employee, or representative from the company who provided the tickets must be present.  If they are not, than the tickets are considered a gift.  Additionally, it is recommended that for the business purpose of the sporting event, a private suite is ideal.  Substantial distractions can’t take away from business purposes.

There are many facets when it comes to entertainment, and gift deductions that really depend on the specific situation.  Please call us if you have any questions or specific questions!

Gordon Advisors, P.C. 248 952 0200

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