Archive for November 2011

Ballgames - can you deduct?

Now that the NBA fiasco is settled, can you deduct the cost of tickets? 

The answer is YES either as (1) business entertainment or (2) a business gift.

If you attend the game with the business client, the cost of the tickets can be deducted only as business entertainment. To qualify, the entertainment must be “directly related to” or “associated with” the conduct of business. A game that precedes or follows a substantial business discussion is “associated with”.

• If you are like me and cannot attend all the games,  and you give the tickets away to a client or potential client, you have a choice:

The expense may be deducted as business entertainment or a business gift.

Key differences:

Business Gift: The deduction for a business gift is limited to $25 per person a year.

Entertainment:  There is no dollar limit on entertainment expenses, but only 50% of the cost is deductible.

WHAT IS HIGH DEDUCTIBLE HEALTH PLAN

For 2011, the health plan will have a minimum annual deductible of $1,200 for single coverage and $2,400 for family coverage.

The annual out-of-pocket maximum is no more than $5,950 for single coverage and $11,900 for family coverage.

HSA 2011 Contributions

2011 Maximum HSA Contributions
Individual contribution
$3,050
Family contribution
$6,150
Catch-up contribution (over age 55 and not enrolled in Medicare)
$1,000
 

The IRS has determined that the change in inflation was not significant enough to result in adjustments to the 2011 limits on Health Savings Account contributions.

Also, see WHAT IS HIGH DEDUCTIBLE HEALTH PLAN

|