This approach would allow entertainment value to go untaxed without creating a new tax shelter for virtual commerce, Lederman says.

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Changes in the tax code, tighter federal regulations on entertainment practices and the overall decline in print-ad sales have also had an effect.

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New York's highest court ruled Tuesday that strip clubs aren't entitled to sales-tax exemptions granted to higher-brow entertainment such as ballets and operas.

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According to the Kansas Department of Commerce, sales tax revenue (STAR) bonds provide Kansas municipalities the opportunity to issue bonds to finance the development of major commercial, entertainment and tourism areas, and use the sales tax revenue generated by the development to pay off the bonds.

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For tax purposes, you can generally only deduct 50% of business-related meal and entertainment expenses.

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