Tax Reform Impact Meals & Entertainment Deduction
The Tax Cuts and Jobs Act made changes to meals and
entertainment expenses that businesses are allowed to deduct. Going forward from January 1, 2018, businesses are no longer
able to deduct most business entertainment expenses including; tickets to
sporting events and theater, private boxes for sporting events, golf dues and
golf outing for clients. Meals with clients are still 50% deductible if business
owner is present, business is conducted and the expense is not lavish or
extravagant. If the taxpayer is not
present, or no business is conducted, then there is no deduction available. Overtime employee meals, meals provided for employer
convenience are now only 50% deductible, as long as they are excluded from the
employee’s income as a de minimis fringe benefit.
Do you provide coffee, water or snacks for your employees
while at work? Those expenses are also
now only 50% deductible.
Honorine M. Campisi,
CPA
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