So are you ready for some football? This year two great teams face off for Super Bowl 50 in California. Since I’m writing this before the big game, “Go Broncos!”
No doubt, many of us are watching the game together at a party. Some of my clients are even having parties for their staff or clients. That’s why today I’m answering the question, can I write off my Super Bowl party or anything related to the big game? The good news is that I’m not going to say “no” flat out. But here are some things you should think about when it comes to writing off Super Bowl fun:
- TICKETS – If you’re going to the Super Bowl or any sporting event, the Internal Revenue Service (IRS) will let you write off a ticket as long as you discussed business during the game. Often the cost of an average seat is tax deductible, but the floor seats right next to LeBron’s bench cost way more than an average ticket, so don’t expect to be able to claim the whole amount
- PARTY EXPENSES - If you’re hosting a party for your clients at your workplace or at home, believe it or not, your accountant or bookkeeper will be able to write off a portion of it. Half or 50% of entertainment costs directly related to or associated with the party are tax deductible. That means you need to talk business during the event and why not go ahead and close a deal while you’re at it! You can invite family members or friends to the party, but you can’t write off those guests.
- RENTING OUT YOUR HOME - Did you know those who live close to Levi’s Stadium, the site of Super Bowl 50 in California, can rent out their house and write it off? The IRS says anyone can rent out their home for 14 days or less and not pay federal income tax. However, you must include income rents in your gross income.
- BIG SCREEN TV - If you just bought a big screen TV to watch the Super Bowl on, you won’t be able to write it off. But if you use that TV regularly for your type of work, you may be able to claim it. The IRS says in order for an item to be deductible, it must be necessary and usual to your business and it must be used regularly. Writing off the cost of a computer may be more realistic, but if you have a media company, the big screen TV might get a pass.
The Super Bowl is an exciting event and a great time to share with friends, colleagues and clients. If you plan to throw a bash, save the receipts, then talk to your bookkeeper or accountant about what is tax deductible and what isn’t. If your bookkeeper doesn’t have the answer, e-mail me or anyone on the Brigade Bookkeeping team, we’ll have the answers. We know how to score touchdowns for our clients.