For summer tax planning, this article is the second of ten tips for reducing taxes.
Tip 2: Hosting Company Events
Generally, costs for company picnics, barbecues, or similar events can be deducted. In addition to providing employees time to relax and socialize, the 50% limit on meals and entertainment expense deduction will not apply. However, the benefit must be primarily for employees who are not “highly compensated” under tax law. Otherwise, expenses are deductible under the regular business entertainment rules.