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04 / 22 / 2018 by Angela Freyman in Business Tax

Business Entertainment and Meals – Changes to Deductions

Dear Clients and Colleagues,

As we wrote in our prior blogs, tax reform has had a significant impact on the tax deductions you can now claim for business entertainment and meals.

The chart below shows you how the Tax Cuts and Jobs Act treats 12 meal and/or entertainment events.

DescriptionAmount Deductible for Tax Year 2018
100%50%Zero
Meals with clients and prospectsX*
Entertainment with clients and prospectsX
Employee meals for convenience of employerX
Employee meals for required business meetingX
Meal served at Chamber of Commerce meetingX
Meals while traveling away from home overnightX
Year-end party for employees and spousesX
Golf outing for all employees and spousesX
Year-end party for customersX
Meals for general public at marketing presentationX
Team-building recreational event for all employeesX
Golf, theater, or football game with your best customerX

* Technically, the TCJA made meals with clients and prospects not deductible.

We understand that the tax writers will modify the law to make so called “non-entertainment meals” with clients and prospects deductible. We don’t know when we will see this change, but track your meals with clients and prospects as if the tax writers will truly make them deductible. You should also plan for the possibility of not being able to take this deduction for 2018, if the lawmakers decide to stick with the current tax reform language.

Call Our Jacksonville, FL CPA Firm for Business Taxation Assistance

We think you will find this chart helpful. If you have questions, please don’t hesitate to contact our office at 904-330-1200 or info@taxproff.com

Copyright 2018, Bradford Tax Institute. As a paid member at www.bradfordtaxinstitute.com, we have their permission to publish and distribute the above information.

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