Are you ready for Super Bowl 52? In just a few short days the Philadelphia Eagles and New England Patriots will faceoff in Minneapolis.
An estimated 112 Million people will watch the Super Bowl this year. Many of those viewers will be watching the game together at a party. Some of your clients may even be having parties for their staff or clients. A big question that many people are asking is, “can I write off Super Bowl activities as a business expense?” The short answer to that question is yes, but there are some guidelines to be aware of. Here are some things you should think about when it comes to writing off Super Bowl fun:
TICKETS
If you’re going to the Super Bowl or any sporting event, the Internal Revenue Service (IRS) will let you write off a ticket if several conditions are met. For an employer to claim a deduction for tickets purchased to a sporting event, Regs. Sec. 1.274-2(c) requires that the sporting event be directly related to the conduct of business. Although this seems like an easy condition to meet, substantial distractions at the event may lead the IRS to conclude that no business transactions could be conducted there. Therefore, it is recommended that employers either use a more secluded suite without the distractions of general seating or document business transactions that occurred before or after the sporting event.
PARTY EXPENSES
If your client is hosting a party for their staff or clients, believe it or not, you can write off a portion of it. Half of the entertainment costs directly related to or associated with the party are tax deductible. Once again, business must be discussed at the party to qualify for a deduction. Unfortunately, if any family members or friends were invited to the party, you can’t write off those guests.
RENTING OUT YOUR HOME
Did you know those who live close to U.S. Bank Stadium, the site of Super Bowl 52 in Minneapolis, can rent out their house and write it off? The IRS says anyone can rent out their home for 14 days or less and not pay federal income tax. However, you must include income rents in your gross income.
The Super Bowl is an exciting event and a great time to share with friends, colleagues and clients. If your clients plan to throw a bash, tell them to save the receipts. After all the festivities are over you can discuss with them what is tax deductible and what isn’t.
Other Super Bowl Fun Facts
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According to the U.S. Department of Agriculture, Super Bowl Sunday is America’s "second-largest food consumption day." (Only Thanksgiving Day beats it.)
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8 million pounds of guacamole is consumed on Super Bowl Sunday
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14,500 tons of chips are eaten along with that guacamole
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Of the top 10 most watched American television programs of all time, nine of them are Super Bowls
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Peyton Manning is the only starting quarterback to win a Super Bowl with two different teams: the Indianapolis Colts in 2007 and the Denver Broncos in 2016.
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The priciest tickets to Super Bowl I, which was played on January 15, 1967, cost $12. Adjusted for inflation, that’s the equivalent of about $89 today. And even at that bargain price, the event still didn't sell out. If you're thinking about buying tickets for this year's event, you'd better be prepared to shell out at least $3200 per ticket
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In Las Vegas, more than $115 million is (legally) bet on the Super Bowl every year.
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Over 700,000 footballs are produced annually for official NFL use and 72 of them are used for the Super Bowl
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The Super Bowl is measured in Roman numerals because a football season runs over two calendar years