Customer Appreciation Event

jodhall — Mon, 14 Apr 2025 00:42:27 GMT

Where on my schedule C would I enter the following for a customer appreciation event held at a venue:

cost of renting venue

cost of catered food

cost of gifts

cost of supplies needed for event

cost of decorating( a company was hired)?

Re: Customer Appreciation Event

TomK2023 — Mon, 14 Apr 2025 01:34:35 GMT

You could list each individual item's description and its cost in Part V Other Expenses, which when totaled will be transferred to Line 27a. See image example below.

Be advised that there are very strict rules pertaining to entertainment and gift costs of business

"If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:

You deduct no more than $25 of the cost of business gifts you give directly or indirectly to each person during your tax year.
- If you and your spouse both give gifts to the same person, both of you are treated as one taxpayer.
- Incidental costs such as engraving, packing or shipping aren't included in the $25 limit if they don't add substantial value to the gift.
- For purposes of the $25 per person limit, don't consider gifts costing $4 or less that have your business name permanently engraved on the item and which you distribute on a regular basis.
Any item that could be considered either a gift or as entertainment is generally considered entertainment and cannot be deducted.
You need to have timely kept records that prove the business purpose of the gift as well as the details of the amount spent and date of the gift."

"You can no longer take a deduction for any expense related to activities generally considered entertainment, amusement, or recreation. You can continue to deduct 50% of the cost of business meals if you (or your employee) are present and the food or beverages aren't considered lavish or extravagant."

Be sure to keep receipts for all the various costs associated with this event.

IRS Pub. 463 - Travel, Gift, and Car Expenses (beginning on pg. 17 & 14, respectively)

TurboTax article: Are business meals considered entertainment?

topic Customer Appreciation Event in Self employed

Customer Appreciation Event

Re: Customer Appreciation Event