Tax Resources

 

Tax Laws & Guidelines
Sports & Event Tickets

The Internal Revenue Code imposes rules on the tax documentation and deductibility of tickets

Tickets are 0%, 50%, or 100% deductible based on purpose of use and reliability of documentation. No documentation leads to no deduction and a significant waste of dollars.

To be eligible for a deduction, all entertainment expenditures must include the amount of the expenditure, the time and place, who the attendees were, why they are a viable business expense, and must include a receipt for any expenditure over $75.

 

Tax documentation = Tax deductibility
Taxpayers generally struggle with obtaining and maintaining tax documentation
icon
Pain Points in Obtaining & Maintaining Documentation

  • Impossible to collect necessary detail
  • Attendees change at the last minute
  • Documenting unused seats
  • Too many transactions
  • Changes in users of tickets
icon
Problems created by a lack of a system or internally built system

  • Reliant on someone “policing” tickets
  • No methodology used consistently leads to inconsistent results
  • Hardcopy documentation and reporting is impossible to maintain and store
icon
Solutions to Obtaining & Maintaining Proper Documentation

   Any potential solution must:

  • Easily collect required tax documentation detail
  • Accurately track required tax documentation
  • Efficiently report on required tax documentation
  • Be available to employees on an as needed basis
  • Centralize purchasing, record keeping, and accessibility to information
Conclusion: Without centralization the entire process is weakened by human error, misunderstanding of tax rules, and inconsistency in application
Request a Demo