Tax Deductions and Credits Are Your Holiday Parties Tax Deductible? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Dec 6, 2023 - [Updated Jan 17, 2024] 2 min read Reviewed by Katharina Reekmans, Enrolled Agent Tis the season to celebrate the holidays – with a good party! There’s just something about the music, the food, and the excellent company that brightens our spirits. However, sometimes, it’s important to consider the practical side of things, like taxes. So, the big question is, are holiday parties tax deductible? The short answer is yes, holiday parties can be tax deductible, but there are some important caveats to keep in mind. First of all, the party has to be a business expense, which means you can’t just throw a party for your friends and then write it off on your taxes. The party must be for your employees, clients, or customers to qualify as a legitimate business expense. Secondly, the IRS has some specific rules around how much of the party you can deduct. Generally, you can deduct the cost of a holiday party if it is open to all employees and their spouses, and the cost is reasonable. However, if you only invite a select group of employees, or if the cost of the party is deemed excessive, you may be limited in how much you can deduct. Finally, keep careful records of all the expenses related to the party, including bites, drinks, decorations, and any rental fees for the venue. You’ll want to make sure you have receipts for everything and that you keep track of who attended the party and why they were invited. Remember: holiday parties can be tax deductible, but only if they meet specific criteria. If you’re planning a party for your employees, clients, or customers, be sure to keep these guidelines in mind. And most importantly, have a great time and enjoy the festivities! Happy holidays! But don’t worry about knowing these tax deductions. With TurboTax Live Business, get unlimited expert help while you do your taxes, or let a tax expert file completely for you, start to finish. Get direct access to small business tax experts who are up to date with the latest federal, state and local taxes. Small business owners get access to unlimited, year-round advice and answers at no extra cost, maximize credits and deductions, and a 100% Accurate, Expert Approved guarantee. Get started now Previous Post TurboTax Offers Refund Advance to Taxpayers Next Post Gift Tax 101: Everything You Need to Know Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a ReplyCancel reply Browse Related Articles Tax Deductions and Credits Are Political Donations Tax Deductible? Rules Around Co… Tax Deductions and Credits How Does Volunteering for a Charity Affect My Taxes? Tax Deductions and Credits Are Medical Expenses Tax Deductible? Tax Planning Start Tax Planning Early: 8 Great Year-End Tax Tips Life What Medical Expenses are Tax Deductible? Self-Employed I Work For a Rideshare Company, How Can I Get My Bigges… Tax Deductions and Credits Are HOA Fees Tax Deductible? What You Need to Know Self-Employed Tax Tips for Self-Employed Personal Trainers Tax Deductions and Credits Your Guide to Vacations and Taxes Tax Deductions and Credits Is This Deductible? My Volunteer Work