Our business clients have long taken advantage of the deductions allowed for meals and entertainment expenses. The new tax law makes some large changes to the old law that has been in place since I began practicing as an accountant, so please make a note of this.
After December 31, 2017, business entertainment is NO LONGER DEDUCTIBLE. The following items are no longer deductible under the new tax law:
So, this means that deductions are NO LONGER ALLOWED for the cost of such activities like golf outings, fishing trips, sporting events, concerts, etc., with clients or business associates, even if business is discussed.
Business meals are still 50% deductible in the following cases:
The old rules providing for 100% deductible employer-provided meals has also been changed to only allow for 50% deductibility.
Please keep this new law in mind as you gather your tax return information for 2018. If you have questions for us, please let us know.
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