conducted to determine the deductibility of business expenses
related to entertainment and dining. The test requires that no other motive
is involved in the incurrence of these expenses other than to further the interest
of the business
. Eligible expenses
can include any entertainment or dining expenses related to the generation of a company's publicity
, price rebates for restaurant or hotel
customers, and the expense
of renting a display area at a convention
. Conditions include the taxpayer
being physically present at the event
and there also may not be other distractions occurring including at a sporting event or other such activities.
If associates and personal acquaintance are present at the event, expenses are typically considered to be non-deductible.