With the holidays quickly approaching, there may be office chatter about a holiday party. This is one timeless tradition that nearly ever industry has invited their employees to be part of in some form or fashion. In 2008 we saw many companies cut back or completely eliminate their company holiday celebrations. While it was a cost saving measure, it also eliminated an annual tradition that most people enjoyed.
It may be time to bring back the party!
Earlier this year we blogged about tax reform that removed the ability for businesses to deduct entertainment. Many companies have been left to reconsider how they entertain clients and employees. So let’s set the record straight.
From 100% deductible to 0% deductible
The elephant in the room was the elimination of tax deductible entertainment expenses. So many of our clients were accustomed to closing deals on the golf course or in a suite at the ballgame. Those rounds of golf and pricey all-inclusive tickets lost their tax deductible status, completely.
Still 50% deductible
When customers asked what they could do instead, we wrote about meals at restaurants and catered events at their offices still being 50% deductible. While it’s still early in the year to see how many companies increased these methods of entertaining, we think it has become a popular option.
Still 100% deductible
Now for the good news. Company holiday parties can still be 100% deductible! So make the most of the upcoming holiday season and celebrate the people who make it all possible, all year long! Reach out to one of the many incredible event specialists in the area and discover how you can get the entire team together to celebrate a year well done! As expected, banquet facilities are expecting to see a drastic increase in holiday parties this year so plan ahead to ensure your company gets exactly what you’re looking for.
As always, you should consult with your Accountant or CPA about your particular circumstances. Be informed of your options and of current tax law.
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