
In order to qualify as a deductible expense, the self-employed or commissioned salesperson must be able to demonstrate that the amount paid was incurred for the purpose of earning income and is a requirement under their conditions of employment. Such expenses may include:
- meals eaten with customers
- the cost of tickets for a theatre, concert, athletic event or fashion show
- the cost of private boxes at sports facilities
- the cost of cruises
- the cost of entertaining guests at clubs (night, social, and sporting)
- taxes, gratuities, and cover charges
- costs incurred for use of recreation facilities and club dues
- purchase of season tickets for sporting events (unless satisfactory proof is provided that the tickets are a promotional expense)
- meals claimed while outside a sales territory or on a vacation
- meals taken after a golf game (at the club house)
Always consult your tax professional before claiming meals and entertainment expenses on your tax return.