The IRS has recently issued new guidelines for these deductions:
- Any expense related to activities generally considered entertainment, amusement or recreation have been eliminated and are no longer deductible.
- Businesses can continue to deduct 50% of the cost of business meals. An employee or the taxpayer must be present and the food and beverages cannot be considered lavish
- The meals must be provided to a potential or current business customer, consultant, client or similar business contact.
- Food and beverages purchased during an entertainment event will not be considered entertainment if it is purchased separately.
Stay tuned for further guidance on these issues!
Christine A. Murphy