Revenue / 05.29.18
Tax Law Changes the Score for Companies That Buy Tickets to Sports Events
Original article published on Kansas City Business Journal (05/29/18) by James Dornbrook
The tax reform package signed in late 2017 could make buying tickets to sports events and concerts for clients a loss for businesses in Kansas City, Mo. "Companies often relied on getting some deductibility for those expenditures," notes MarksNelson tax manager Beth Van Leeuwen. Because companies are key procurers of suites and box seats for sports teams, it is likely the teams will not change their selling strategy, although they too will be reexamining how business owners are getting value for their money. This could entail creating special experiences for the companies to guarantee the businesses and their clients are getting prioritized treatment. "It's important to not let the tail wag the dog," Van Leeuwen says. "If you buy sports tickets to take prospects to a game and it helps you land or keep a big client, it may be worth it even if it's not deductible." The tax reforms still permit businesses to give tickets to a charity, but there is an opaqueness in terms of deducting tickets for attending charitable events. Although gifting tickets to a client for a charitable event is no longer deductible, if the ticket cost includes a premium to directly raise money for the charity, that still could be deemed a charitable gift.
Read the full story on the Kansas City Business Journal website.
Tags: Sports , Music , Regulations , News