With the FIFA World Cup underway this summer, many businesses are buying tickets for clients and treating it the way they always have, as client entertainment. The gesture has not changed, but the tax rules around it did back in 2018, and the answer is no longer as straightforward as it once was. 

Under current law, the tickets themselves are not deductible. The Tax Cuts and Jobs Act eliminated the entertainment deduction, which means tickets to sporting events, concerts, and similar outings are nondeductible regardless of who attends or what business gets discussed. World Cup tickets are no exception. 

Where things get more nuanced is with food and beverages. A meal purchased at the stadium can still be 50% deductible as a business meal, but only if it is documented and billed separately from the ticket. The IRS draws a clear line here: when food and entertainment are bundled on a single invoice or receipt, the meal loses its deductibility along with the ticket. Keeping those expenses separate is the best way to preserve the deduction. 

Client gifts are worth considering as well. A jersey or souvenir picked up for a client may qualify as a business gift, which is deductible up to $25 per person per year. Given what merchandise runs at major sporting events, most items will clear that threshold quickly, but the first $25 remains deductible. One important caveat is that if an item could reasonably be viewed as entertainment rather than a gift, the IRS will treat it that way, and the deduction disappears entirely. 

The practical takeaway for businesses is to go in with a clear plan. The tickets are a sunk cost from a tax perspective, so the focus should be on what is documented separately. Pay for meals and beverages on a separate check, keep receipts that clearly show what was purchased and when, and treat any client gifts as a distinct transaction. Good recordkeeping does not change what is deductible under current law, but it ensures you capture every deduction you are actually entitled to. 

At MTA, we help clients think through situations like this before they turn into costly surprises. If you have questions about client entertainment, deductions, or how to document expenses correctly, our team has been navigating exactly these kinds of issues for Houston’s high-net-worth individuals and business owners since 1985.