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Changes in Meal and Entertainment Deductions under the New Tax Law (TCJA)

Posted by Admin Posted on Nov 05 2018

Changes in Meal and Entertainment Deductions under the New Tax Law (TCJA) – beginning with the 2018 tax year expenses for entertainment, amusement and recreation, commonly considered “entertainment” expenses, will no longer be tax deductible.  The tax deduction for “meal” expenses are still 50% deductible as under prior law, if the taxpayer is present and the food and/or beverages are not considered lavish in nature.  The meals may be provided to a current or a potential business client, consultant or similar business contact.  Food and beverages provided during entertainment events are not considered entertainment and are therefore still 50% tax deductible, if purchased separately from the event, and documented as such.  Please contact us if you have any questions or want to discuss the specifics of how this change in the tax law impacts you and your business.  Mike and staff