LISA P. GONZALEZ, CPA, PLLC Certified Public Accountant Certified Tax Coach
LISA P. GONZALEZ, CPA, PLLCCertified Public AccountantCertified Tax Coach   

                             Meals & Entertainment Expenses for 2018

With the passage of tax reform in 2018, meals and entertainment have been revised.  Here are some things you will need to know:

 

ALL business entertainment expenses incurred are no longer tax deductible no matter what the circumstances.  This includes ball games, movies, plays, concerts, club memberships, etc…

 

Business meals associated with entertainment are no longer tax deductible.  For example, a business meal at a ball game would give you no deduction for the meal or the ball game tickets.

 

The following business meals are 50% tax deductible:

  • Meals provided to clients, as long as business is conducted, the business owner or an employee is present and the meal is not lavish or extravagant
  • Meals provided for the convenience of the employer
  • Meals provided to employees for overtime work or on an occasional basis
  • Coffee, water and snacks provided at the office
  • Meals provided during employee meetings or stockholder meetings
  • Meals while traveling on business
  • Meals while at a seminar, conference or event

 

The following business meals are 100% tax deductible:

  • Office Christmas party or picnic
  • Meals included in compensation of employee or contractor
  • Meals sold or reimbursed to a client or customer
  • Meals offered to the public for free at a seminar or event

 

 

Code Sections: 274(a)(1), 274(k)(1), 274(n)(1), 274(e)(1)&(2), 274(e)(5)&(6), 274(e)(7)

         
           
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