If you think American tax laws are tough on meals and entertainment, read this story recently reported by Chelm on the Web.

The Israel Tax Authority finally updated the amount that the independently employed can put down on their tax returns as expenditures for wining and dining a business associate. It took a High Court of Justice order from the Israel Supreme Court to get pokey pencil-pushers to change the deductible expenses for breakfast, lunch and dinner out with a client.The limit has not been adjusted since…1985.

Article reprinted with the permission of W. Murray Bradford, CPA

QUESTION:  I sell property and casualty insurance in Florida. I also like to scuba dive. I would like your opinion on whether or not the following is deductible. I  spent five hours with a prospect. First we went on a dive, then we spent two hours at dinner, where I asked the prospect to buy his car insurance and homeowners insurance from me. May I deduct the cost of the dive and the dinner? (S.D., Vero Beach, FL)

Today TaxMama hears from Mimi in the TaxQuips Forum who tells us. “My husband coaches my son’s Little League and travel basketball team.  Occasionally, he buys equipment for the team’s use and hosts an after-season party, complete with pizza, cake and beverage.  Some of these expenses are not reimbursed by the league.  Are these deductible?  How about gas mileage to check on the fields or going to games and practices?”