Deducting a Skybox Rental

A skybox is a private area in a sports arena containing luxury seating. Skybox seats are usually rented for a season or for a series of games, for example, the World Series.

Separately stated items charged for food and beverages are deductible as entertainment expenses and subject to the 50% limitation.

Here's how you deduct the cost of seats in a skybox:

  • One game: If you rent a skybox for just one game, deduct 50% of the cost of the skybox.
  • More than one game: If you rent a skybox for more than one game you may not deduct more than the face value that you would pay for the same number of non-luxury seats. The 50% limitation applies.

Example: One game

  • You pay $1,000 for a skybox with five seats for one game.

You may deduct $500 (50%x $1,000).

Example: Two games

  • You pay $1,000 for a skybox with five seats for two games.
  • The cost of five non-luxury box seat tickets for two games is $400 ($200 per game).

You may deduct $200 (50%x $400).

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