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Old 03-04-2008, 09:54 AM
TaxGuru TaxGuru is offline
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Join Date: Jan 2007
Location: New Jersey, USA
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Is entertaining clients at vacation home deductible?

I am 100% convinced that in the event of an Audit, these expenses would be found to be non-deductible and according to the IRS strong arm tactics, you the Preparer will have to bear the consequences of being Fined at least Tier 1 penalty of $1,000. Not, to mention that you will have to make a disclosure on the tax return claiming this deduction.

Its really not worth the pain to attempt to appease the client on this! No is my answer!
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