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Going To Watch A Golf Tournament Can Turn Into A 100% Deductible Business Setting
San Rafael, CA
Tuesday, January 26, 2010
Going To Watch A Golf Tournament Can Turn Into A 100% Deductible Business Setting
San Rafael, Calif—January 18, 2010/Expert Click—One of the more popular locations for out-of-office business meetings is undoubtedly the golf course. Whether playing 18 holes, or watching a tournament, golf is undeniably a favorite for client interaction. However, this type of activity is not inexpensive, and therefore finding the greatest possible deduction is important. Most deductible entertainment is only eligible for a 50% deduction, but would you believe that you can deduct 100% of all expenses towards the golf experience? It is possible, and it can be as easy as a three-foot putt.
"Golfers are tax advantaged. Unlike most entertainment that suffers a 50 percent cut in deductions and faces other limits, golfers can qualify for a 100 percent entertainment deduction when they play in, or are a spectator at, a qualified charity event," says W. Murray Bradford, tax reduction expert and publisher of the Tax Reduction Letter. "The events can be large PGA TOUR events or local school golf outings. Both are tax advantaged."
Now you can't just go out and play golf whenever you want and get a full 100% deduction every single time. There are guidelines that need to be followed and qualifications that need to be met for it to fall into the 100% category.
"You may deduct 100 percent…of what you spend for any ticket to any sports event that is organized for the primary purpose of benefiting 501(c)(3) charities, gives all its net proceeds to 501(c)(3) charities, and uses volunteers for substantially all the work performed in carrying out the event."
This is a great opportunity considering how often business meetings can happen out of the office, with the majority of them being only 50% deductible. Because of the two different possible situations, it is important to clearly differentiate your notes in your records. According to Bradford, "the 'business golfer' needs two categories for his entertainment deductions: 50 percent-deductible entertainment, and 100 percent-deductible entertainment." This ensures that there will be no mistake when submitting your tax information. Furthermore, it is important to make sure that you qualify the entertainment as a business excursion.
"The golf tournament is not going to be a business setting for you. Therefore, you need to create a business situation that will produce a tax deduction for associated entertainment," states Bradford. He further explains that it is necessary to involve the who, where, why, and total expenses in your documentation, so that it clearly shows that it was a business-related outing rather than a couple friends getting together for a round of golf.
Evidently, as long as you follow the guidelines, you can enjoy anything from a round of golf at Pebble Beach, to "a ticket for the presidential suite on the 15th fairway at the…President's Cup," for little to nothing. So, rather than having to compute what it's going to cost you in the end, you can spend that time figuring out what your handicap will be for your next 18-hole experience.
Bradford's Tax Reduction Letter is a monthly newsletter containing numerous articles that cover real-world information about tax law and tax strategies. It can be found at the Bradford Tax Institute, and every issue is archived on the website, giving you access to over 465 articles covering many tax topics.
###
About Murray Bradford, CPA, Tax Reduction Expert
Tax reduction expert Murray Bradford, certified public accountant and publisher of the monthly Tax Reduction Letter, has over 40 years of experience in developing and implementing small business tax reduction strategies. His website, the Bradford Tax Institute, is home to an archive of over 465 articles from the Tax Reduction Letter. Following nine years at Price Waterhouse, where he twice enjoyed the distinction of being selected to serve in the firm's Washington, D.C. national office, Bradford launched his tax reduction strategies businesses to focus on lowering taxes for one-owner and husband-and-wife businesses. A former Marine and author of several books, Bradford is an active member of the American Institute of Certified Public Accountants, the California Society of CPAs, the Minnesota Society of CPAs, and the Greater Washington, D.C. Society of CPAs.
The media may contact the following individuals:
Barry Horton
Regional Resource Manager, Tax Reduction Letter
7 Mount Lassen Dr., Ste. C258
San Rafael, CA 94903
bhorton@bradfordandcompany.com
PHONE (direct): 415-446-4340
FAX: 415-446-0127
Murray Bradford, CPA
Bradford Tax Institute
San Rafael, CA
415-446-4340
415-446-0127
http://twitter.com/taxreductioncpa
San Rafael, Calif—January 18, 2010/Expert Click—One of the more popular locations for out-of-office business meetings is undoubtedly the golf course. Whether playing 18 holes, or watching a tournament, golf is undeniably a favorite for client interaction. However, this type of activity is not inexpensive, and therefore finding the greatest possible deduction is important. Most deductible entertainment is only eligible for a 50% deduction, but would you believe that you can deduct 100% of all expenses towards the golf experience? It is possible, and it can be as easy as a three-foot putt.
"Golfers are tax advantaged. Unlike most entertainment that suffers a 50 percent cut in deductions and faces other limits, golfers can qualify for a 100 percent entertainment deduction when they play in, or are a spectator at, a qualified charity event," says W. Murray Bradford, tax reduction expert and publisher of the Tax Reduction Letter. "The events can be large PGA TOUR events or local school golf outings. Both are tax advantaged."
Now you can't just go out and play golf whenever you want and get a full 100% deduction every single time. There are guidelines that need to be followed and qualifications that need to be met for it to fall into the 100% category.
"You may deduct 100 percent…of what you spend for any ticket to any sports event that is organized for the primary purpose of benefiting 501(c)(3) charities, gives all its net proceeds to 501(c)(3) charities, and uses volunteers for substantially all the work performed in carrying out the event."
This is a great opportunity considering how often business meetings can happen out of the office, with the majority of them being only 50% deductible. Because of the two different possible situations, it is important to clearly differentiate your notes in your records. According to Bradford, "the 'business golfer' needs two categories for his entertainment deductions: 50 percent-deductible entertainment, and 100 percent-deductible entertainment." This ensures that there will be no mistake when submitting your tax information. Furthermore, it is important to make sure that you qualify the entertainment as a business excursion.
"The golf tournament is not going to be a business setting for you. Therefore, you need to create a business situation that will produce a tax deduction for associated entertainment," states Bradford. He further explains that it is necessary to involve the who, where, why, and total expenses in your documentation, so that it clearly shows that it was a business-related outing rather than a couple friends getting together for a round of golf.
Evidently, as long as you follow the guidelines, you can enjoy anything from a round of golf at Pebble Beach, to "a ticket for the presidential suite on the 15th fairway at the…President's Cup," for little to nothing. So, rather than having to compute what it's going to cost you in the end, you can spend that time figuring out what your handicap will be for your next 18-hole experience.
Bradford's Tax Reduction Letter is a monthly newsletter containing numerous articles that cover real-world information about tax law and tax strategies. It can be found at the Bradford Tax Institute, and every issue is archived on the website, giving you access to over 465 articles covering many tax topics.
###
About Murray Bradford, CPA, Tax Reduction Expert
Tax reduction expert Murray Bradford, certified public accountant and publisher of the monthly Tax Reduction Letter, has over 40 years of experience in developing and implementing small business tax reduction strategies. His website, the Bradford Tax Institute, is home to an archive of over 465 articles from the Tax Reduction Letter. Following nine years at Price Waterhouse, where he twice enjoyed the distinction of being selected to serve in the firm's Washington, D.C. national office, Bradford launched his tax reduction strategies businesses to focus on lowering taxes for one-owner and husband-and-wife businesses. A former Marine and author of several books, Bradford is an active member of the American Institute of Certified Public Accountants, the California Society of CPAs, the Minnesota Society of CPAs, and the Greater Washington, D.C. Society of CPAs.
The media may contact the following individuals:
Barry Horton
Regional Resource Manager, Tax Reduction Letter
7 Mount Lassen Dr., Ste. C258
San Rafael, CA 94903
bhorton@bradfordandcompany.com
PHONE (direct): 415-446-4340
FAX: 415-446-0127
Murray Bradford, CPA
Bradford Tax Institute
San Rafael, CA
415-446-4340
415-446-0127
http://twitter.com/taxreductioncpa
Barry Horton
Regional Resource Manager
Bradford Tax Institute
San Rafael, CA
415-446-4340
