entertainment deduction

Thân thiện

A manager discusses the entertainment deduction with an accountant.

Definition

Noun: - A tax deduction: An "entertainment deduction" is a specific tax deduction allowed by tax authorities for certain, limited expenses related to entertainment that are incurred for business purposes. It is a reduction in taxable income claimed for qualifying business entertainment costs.

Usage

• The term is used primarily in financial, accounting, and business contexts when discussing tax law, expense reporting, or corporate finance.
• It refers to a specific category of deductible expenses, not to the act of deducting in general.

Examples

Advanced Usage

• The rules governing what constitutes a valid entertainment deduction vary by jurisdiction and are often subject to specific limitations (e.g., only 50% of the cost may be deductible) and requirements (e.g., the entertainment must be directly related to the active conduct of business).

Variants and Related Words

• Business deduction (n): A broader category of tax deductions for ordinary and necessary business expenses, under which an entertainment deduction may fall.
• Meal deduction (n): A related but often separate category for the cost of business meals.

Synonyms

• Business entertainment expense write-off: A more informal synonym describing the same concept of reducing taxable income for qualifying entertainment costs.

Notes on Meaning

• This is a compound noun with a specific, technical meaning in tax law. The word "deduction" here does not mean the general process of reasoning or subtracting, but specifically a tax deduction. The word "entertainment" is narrowly defined by tax codes (e.g., may include meals, event tickets, etc., for business purposes).

Học thuật

Noun

1. deduction allowed for some (limited) kinds of entertainment for business purposes