Page 54 - Other Income for Individuals

Other Income - Host or Hostess

Host or Hostess.
Host or Hostess.

• If you host a party or event at which sales • The meals may be provided to a current
are made, any gift or gratuity you receive or potential business customer, client,
for giving the event is a payment for consultant, or similar business contact.
helping a direct seller make sales.
• You must report this item as income at its • Food and beverages that are provided
during entertainment events will not be
fair market value.
• Your out-of-pocket party expenses are considered entertainment if purchased
separately from the event.
subject to the 50% limit for meal expenses.

Host or Hostess. Host or Hostess.

• For tax years 2018 through 2025, no • For more information about
deduction is allowed for any the 50% limit for meal
expenses related to activities expenses, see Pub. 463,
generally considered entertainment, Travel, Gift, and Car Expenses.
amusement, or recreation.
• Taxpayers may continue to deduct
50% of the cost of business meals if
the taxpayer (or an employee of the
taxpayer) is present and the food or
beverages are not considered lavish
or extravagant.

52