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Will the Trump Tax Bill Drive Down Ticket Sales?

Built into the Tax Cuts and Jobs Act is a provision stripping out the 50 percent deduction for business entertainment expenses, like taking clients to sporting events. MWE Partner Lance Christensen talks to The New York Times about the impact this may have on businesses and sports teams’ future ticket sales.

 

 

“This is going to have an impact,” said Lance Christensen, a certified public accountant and tax practice leader at Margolin Winer & Evens in Garden City, N.Y.

Christensen is alerting his clients to the increased real cost of tickets and said firms would use an array of factors to calculate the costs and benefits of the tickets and other entertainment options like theater and golf outings. Those include the reduction in the corporate tax rate, but also the state of the economy and the specific business, and the fate of the teams they pay to see.

“When things start turning with your particular industry or company, or the economy in general, one of the first things companies look at is these types of entertainment expenses,” Christensen added.

Still, sports must compete with other entertainment options, and some of those remain tax deductible. Christensen pointed out that companies could still use the deduction for business meetings at fancy restaurants.

“So do I really need so many games?” he said. “And would one of my clients be just as happy to go farther back in the stands, and instead we use that money to go to a nicer restaurant?” Read more>>>


Read: Feds end deduction for entertaining clients

Read: New Tax Law Could Affect Sports Teams’ Ticket Revenue

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