Business entertainment is usually 50% deductible, provided it’s before or after a business meeting. Say you spend an hour talking with a business associate, then you take him to a ball game. The costs you incur (tickets, parking, refreshments) are 50% deductible.
Be sure you have records of the business as well as the ball game. Your meeting must be related to a profit-oriented venture in which you’re involved, and your records should show an honest effort to make a profit. You may find it difficult to entertain a business associate without your spouse, especially if your associate has come from out of town, with a spouse. So if you take this client or prospect out to dinner, with spouses, your expenses normally will be 50% deductible, which is the tax code limit for deducting business entertainment.
