Sutter – only excess cost. Have to show that costl is “different from” or “in excess of” normal personal expense. Rule now applied to abuse cases.
§274(n) – deduction limited to 50% of the cost. Including tip, tax, cover charges, entertainment but not transportation to/from (fully deductible).
Restrictions under §274
§274(a) – disallows deductions for entertainment activities unless shown to be directly related to active conduct of business or associated therewith if item precedes or follows substantial and bona fide business deduction. No club dues.