The Tax Cuts and Jobs Act (TCJA) eliminates the deduction for business-related entertainment expenses for amounts incurred or paid after Dec. 31, 2017. The TCJA also modifies the rules for deducting meals in certain situations. This chart shows the tax treatment of some of the more common meals & entertainment expenses of most businesses, and compares the tax treatment of these expenses before and after the TCJA. The list is not all-inclusive, but should give you a solid basis to determine what is and is no longer deductible in this area of tax law. In order for your tax return to properly treat these deductions, you’ll need to maintain records that show the amount of meals & entertainment expenses incurred by category. The days of claiming a 50% deduction for M & E are over.
Please contact your BS&P professional for more details.