Meals and Entertainment, what’s deductible and what isn’t?
It used to be that you could deduct most meals or entertainment activities that were involved as a part of a business trip. However, between 2017 and 2018, Congress set some limits on what you can deduct.
Taking your client or potential business partner to the Lakers game, the cost of bucket seats is no longer deductible.
However, if you take that same client out to dinner, be sure to document it because THAT’S DEDUCTIBLE.
The same applies for Club Memberships and sporting events hosted for charity or educational institutions. The cost to get into such events is not deductible but the foods or snacks you purchase there are.
Did you know about these tax reform changes? Is this affecting the way you conduct your business trips? Let us know below! TaxMax Services 916-917-8175
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