The expense of a sales luncheon may be deductible (50 percent in the current year) even if no sale is made.

Question

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The expense of a sales luncheon may be deductible as a business expense even if no sale is made, as long as it is directly related to the active conduct of a trade or business and is not considered lavish or extravagant. The deduction is limited to 50 percent of the cost in the current year.

The Expense of a Sales Luncheon May Be Deductible (50