It’s fine. Put the asset on your balance sheet and depreciate it. For tax purposes you’ll want to research the options of depreciation. You May be able to fully depreciate it in year 1, however you will probably have to recognize a bigger gain when you sell it later.

Also I believe the safe harbor amount is still $2,500 for all businesses meaning if you buy an asset for the business and it cost 2,500 or less, you can just expense it and not have to list it as an asset and depreciate.

Your accountant should know all this so just double check with them.

Then I suggest researching residual values and the differences between depreciating an asset that way for book purposes and for tax purposes.

I haven’t done tax research in a while but I’m pretty sure certain typeS of staff entertainment is 100% deductible now. What qualifies for that, I’m not sure.

Quick google found this but you’ll need to confirm this with the IRS rules. Per the new meals and entertainment rules that started in 2018:

100% deduction allowed for qualified employee recreation, social, or similar activities (such as a Christmas party, annual picnic, or summer outing) and related facility costs (such as a swimming pool, baseball diamond, bowling alley, or golf course) which are primarily for the benefit of non-highly compensated employees

Yeah. I’m sure a ton of professional sports teams lost a lot of season ticket holders too as those used to be deductible but aren’t anymore.

It’s still 100% and you just have to make sure it’s not for the highly compensated employees only. Having trouble finding the full IRS details of the current rule though.

I know. But there was actual accounting shit to be learned there!

At the end of the day, you report this as a business expense or asset, what is it really saving you in taxes? Not much.