Recently passed tax bill denies (effective for amounts incurred after 12/31/17)

Author: J&R Accounting Group LLC. | | Categories: Accountant , Accounting , Accounting Firm , Bookkeeper , Bookkeeping , Business Accounting , Business Entity Selection , Business Tax Return , Certified Public Accountant , CPA , IRS Tax Problems , Personal Accountant , QuickBooks , Small Business Accounting , Tax Accountant , Tax Advisor , Tax Planning

Blog by J&R Accounting Group LLC

Recently passed tax bill denies (effective for amounts incurred after 12/31/17) the deduction for business entertainment (events, athletic events, recreation and amusement, etc.). The 50% deduction for business meals is still available assuming all the requisite requirements are maintained (documented as to who, what, when, where, and that a substantial business discussion takes place during the meal).

Comparison between the old law and new law:

Type 2017 Law 2018 Tax Reform
Employee Recreational Event Deduct Deduct
Entertaining Clients 50% Deductible Only Meals 50% Deductible
Employee Travel Meals 50% Deductible 50% Deductible
Meals provided for convenience of employer
that are not included in employee’s gross income
   
(de minimis fringe benefits) 100% Deductible 100% Deductible


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