When you take an entertainment deduction, make sure you do the following
Either write on the receipt who you took out or record it in an entertainment dairy.
Make sure the entertainment occurs in a “business setting” so that business can be discussed. If you are going to a concert or a basketball game with a business associate, make sure there is a business setting you can discuss business at before or after the event. To be deductible, business has to be discussed.
Record the elements of substantiation (who, what, where, when, why and how much).
If you have all these things, you have a deductible entertainment expense. Even if it is lavish, it is deductible. Lavishness is not a disallowable offense according to an IRS audit guide for attorneys that has since been combined with the standard guide for all business taxpayers.