Entertainment expenses

You can deduct part of the cost of entertaining clients. Expenses you can deduct include those for food, beverages, tickets, and entrance fees to entertainment or sporting events. You can also deduct tips, cover charges, room rentals to provide entertainment, such as hospitality suites, and the cost of private boxes at sports facilities.

The most you can deduct is 50% of the lesser of:

  • the amount you actually paid
  • an amount that is reasonable in the circumstances

Completing your tax return

Enter this amount plus any amount for Food and beverages on the Food, beverages, and entertainment expenses line (8523) of Form T777, Statement of Employment Expenses.

Enter on line 229, the allowable amount of your employment expenses from the total expenses line of Form T777.

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