Taxes - Extra Expenses at the Holidays for Meals and Entertainment

I get asked this every year...

"Can I claim the cost of my office party?"

Generally speaking there is a limit of 50% that you're allowed to claim for meals and expenses. But there are a few exceptions and at this time of year this exception comes into play.

Keeping in mind that there is always the expectation that the expense will be reasonable, the rule for claiming that holiday shindig is a resounding "yes" you can claim 100% of your holiday party.

The caveat is that it has to be open to all employees and can include clients. The other bit that is worth noting is that you're not limited to claiming this expense once a year - you can host a party and claim 100% of meals and entertainment up to 6 times a year. Conditions apply.

....and yes, you can host the party in a restaurant or at your business location.

There are other times when you can claim more than the 50% - if you're uncertain, keep receipts and ask your tax specialist.

Debbie Adams is a Certified Tax Preparer specializing in Sole Proprietors.