Hello everyone, I hope you are doing well. The passage of
the The Tax Cut and Jobs Act of 2017 (TCJA) has come with some very interesting
changes for 2018. One of the least publicized changes has been the elimination
of the 50% deduction for Meals & Entertainment Expenses.
Prior to 2018 employers were able to deduct 50% of the
expenses for taking a client out for a meal and/or a sporting event. For 2018
this will no longer be deductible. We are still waiting on additional guidance
from the IRS on the "Meals" portion, but for now it looks as if this
is no longer deductible.
Meal expenses incurred while traveling on business are still
50% deductible.
Meals provided to an employee for the convenience of the
employer on the employer's business premises are 50% deductible. These meals
should be available to all employees to be deductible.
We recommend establishing two accounts in your accounting
software to track "Meals and Entertainment" and "Deductible
Meals".
This is a big change for many business owners. If you have
any questions or need additional guidance please contact me.
Thank you!
Raymond E Halstead, CPA
REH CPA, PLLC
704-662-8249
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