Can I Claim Client Entertainment as a Business Expense in United States?
No — entertainment expenses are entirely non-deductible since the Tax Cuts and Jobs Act of 2017 (effective 2018). Sports tickets, concerts, theater, golf — all disallowed even if business is discussed. Meals are still 50% deductible if separately stated.
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What Internal Revenue Service (IRS) says
TCJA amended IRC Section 274 to entirely disallow entertainment, amusement, and recreation expenses. Activities considered entertainment: golf, theater, concerts, sporting events, hunting/fishing trips. Meals at entertainment events can still qualify for the 50% meal deduction IF separately purchased and invoiced.
When you can claim
- Meals at a sporting event — 50% if separately invoiced from the tickets
- Charitable event tickets — to the extent of charitable contribution (not entertainment)
- Recreational events for the entire workforce (employee morale) — 100% deductible
When you cannot claim
- Sports tickets to take a client
- Concert/theater with prospects
- Golf with vendors
- Country club / fitness club dues
- Yacht, hunting lodge, or similar facilities
Good to know
Important: The pre-TCJA 50% entertainment deduction is gone. Some state taxes (California) decoupled and still allow entertainment — check state rules separately.
Related expenses
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