Entertainment and meals qualify as business expenses if they are incurred in the pursuit of establishing or maintaining clients. For example, if you give a client a gift certificate to a restaurant or a pair of tickets to a hockey game, those gifts are considered to be meals and entertainment expenses. As a result, you may write off half of their value.
Keep the receipts for your records and a few notes indicating how the expense was business-related. In some cases, you may also be able to claim 100 percent of the cost of client gifts as an advertising or promotional expense.
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