The IRS has issued clarification on the business expense deduction for meals and entertainment following changes to the Tax Cuts and Jobs Act ( TCJA).
TCJA eliminates the deduction for any expenses related to activities generally considered entertainment, sporting events pop into to mind. However, meals can be deducted at a rate of 50% of the cost as long as an employee of the taxpayer is present and the food and/or beverage isn't considered lavish or extravagant. These meals can be provided to current or prospective clients.
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