It might not be as expensive as you think.

Office PartyIf you are considering, or have decided, to have an office celebration (ex. holiday, anniversary, employee recognition) you may qualify for a tax deduction. Your office event expenses such as food, beverages and entertainment, could actually be 100% tax deductible, as long as ONLY employees attend your function and you adhere to guidelines provided by the IRS.

IRS guidelines
Be sure you keep good records of the following to qualify for the 100% deduction:
• Keep documentation that supports the event (i.e. contracts, invitation copy, etc.)
• Keep all receipts of your expenses
• Keep a list of attendees

You are welcome to invite others (it’s your party), but it will complicate the deduction. With guests in attendance, you will need to treat some costs as entertainment or meals, which will be subject to limitations.

We have presented a simplified look at this particular tax deduction. There are usually exceptions and other specifics to consider. Please call us if you have questions about this topic or other tax-related concerns at 401-831-0200 or Enjoy the party!