Can You Write Off Concert Tickets on Your Taxes?

Many people look for ways to reduce their taxable income, and one common question is whether concert tickets can be written off. While entertainment expenses are generally not deductible, there are exceptions where tickets might qualify as a business or charitable expense.

Understanding when these purchases meet tax-deductible criteria is essential to avoid mistakes that could lead to IRS scrutiny.

Criteria for Business-Related Write-Offs

For concert tickets to qualify as a deductible business expense, they must meet IRS requirements under Section 162 of the Internal Revenue Code, which allows deductions for expenses that are ordinary and necessary for conducting business. However, Section 274 imposes strict limitations on entertainment expenses, making most concert ticket deductions unlikely.

One possible exception is client entertainment. If a company buys tickets to entertain prospective clients with the goal of securing a contract, the cost may be partially deductible. However, the Tax Cuts and Jobs Act (TCJA) of 2017 eliminated most entertainment deductions. Even if the event is business-related, the expense is usually not deductible unless the tickets are part of a package that includes food and beverages separately stated on the invoice.

Another scenario where tickets might be deductible is when they are given to employees as incentives. If a business provides concert tickets as a reward for performance, the cost may be deductible as an employee benefit. However, if the tickets are considered taxable income for the employee, they would also be subject to payroll taxes.

Charitable Contribution Tickets

Concert tickets purchased as part of a charitable fundraiser may qualify for a tax deduction under specific conditions. Many nonprofit organizations hold benefit concerts or gala events to support their mission. The IRS allows deductions for contributions to qualified 501(c)(3) organizations, but only for the portion of the ticket price that exceeds the fair market value (FMV) of the event.

For example, if a charity sells tickets for $200 each and the FMV of the concert experience is $75, the remaining $125 could be claimed as a charitable donation. However, if the ticket price simply covers the cost of attendance, no deduction is allowed.

Organizations often provide written acknowledgments specifying the FMV of the event, which helps donors determine their deductible amount. If premium seating, backstage access, or other perks are included, their FMV must also be factored in, potentially reducing or eliminating the deductible portion.

Documentation Requirements

Proper documentation is necessary when claiming any tax deduction, including concert tickets. The IRS requires substantiation, meaning taxpayers must keep detailed records proving the expense qualifies under tax rules. Without proper documentation, even a legitimate deduction can be denied in an audit.

A receipt or invoice showing the purchase details is essential. This should include the date of the transaction, the amount paid, and the name of the seller. If the expense is reimbursed by an employer or another entity, it cannot be deducted on an individual tax return.

For business-related ticket purchases, there should be a clear record of who attended and how the event was connected to generating income. A calendar entry, email invitation, or notes detailing the business discussion can help support the deduction.

If tickets were given away as part of a contest or customer loyalty program, additional documentation is needed. Businesses should keep records of advertisements, contest rules, and winner notifications. The expense should also be categorized correctly in accounting records, typically under advertising or promotional costs rather than entertainment, to avoid disqualification under IRS scrutiny.

Non-Deductible Situations

Many expenses that seem business-related or charitable ultimately fail to qualify for a tax deduction due to IRS limitations. One common mistake is attempting to deduct personal entertainment costs under the guise of networking or professional development. Even if a concert outing involves work-related discussions, the IRS does not consider general social events deductible unless they meet strict criteria.

Tickets purchased for family members or friends, even if they accompany a business associate, are also non-deductible. The IRS does not allow deductions for expenses that are primarily personal, even if a minor business discussion takes place.

Self-employed individuals who try to deduct concert tickets as a morale-boosting expense may face disallowance unless there is a structured and documented employee benefit program in place.

If tickets are raffled off or used as prizes for promotional giveaways, the expense may not be deductible unless there is a direct and measurable impact on business revenue. Without a clear link to income generation or brand promotion, such expenses are often classified as non-deductible entertainment costs.