Saying that Las Vegas offers a wide variety of entertainment choices is saying a lot. From touring hotel and casino bright lights to getting your picture taken with Elvis at the “Welcome” sign; to dining and watching the best entertainment offered or enjoying the local ballet company to spending an afternoon at the Smith’s Center with a Broadway show or hanging out at the ballpark with the Area 51s there is certainly a lot to choose from.
Which brings me to the point, is a gift of tickets to a customer itemized as a business gift or an entertainment expense?
In a nut shell, when a business provides a customer with event tickets the tax treatment depends on whether an employee of the corporation attends the event with the customer.
Giving tickets without attending with your customer the costs may be treated as a business gift or as entertainment. But if an employee attends, the tickets are considered entertainment.
The rewards of customer loyalty greatly exceed the cost of a simple thank you especially when it is said, “Vegas style.” Whether you attend and enjoy with them is your choice.
Be Tax Advantageous and choose wisely.
Are you operating your business under a single-member LLC? This entity has no effect on how the income or losses are reported.
Single-member LLCs that have rental properties titled to it have the income is reported on Schedule E, even if tax documents are issued with the LLC’s EIN.
Questioning your business entity choice now? If you would like to review your entity choice and its tax implications call me to schedule a consultation.
Being Tax Advantageous NOW may save you a lot later.
Rhonda A. Mannes,