Tax Update: Entertainment Deduction Clarified

Share this

50% of Meals for Clients/Customers Now Deductible

On October 3, the IRS issued a new guidance that will allow a deduction for 50% of meals while entertaining clients/customers. This decision was made following confusion over the wording in the tax law regarding meal write-offs. The current language was unclear to many professionals as to whether the benefit was completely eliminated, or not.

The new preliminary guidance from the IRS (to be formalized later) says that the costs of business meals while entertaining clients are still deductible as long as they’re reflected on a separate receipt.

“Food and beverages that are provided during entertainment events will not be considered entertainment if purchased separately from the event,” the IRS said in a statement. For example, a meal purchased after a round of golf could be deducted. However, tickets to a box to view a sporting event that includes food and drink would not be eligible for the tax break.

For questions or concerns about the new tax code and its applicability, feel free to reach out to a K·Coe Isom tax advisor.

 

How to Combat Ag’s Downward Trends

10 Steps for Leaner and Greener Financials Weak commodity prices and an international trade war have inflicted pain on American agriculture – at a ...

Your Land. Your Terms. Your Profits.

Perception vs. Reality of Diversifying Land for Revenue Source Your land is the foundation on which you – and your family – have built your lega...

8 Ways to Prep your Farm Business for 2019

Tackle these worthwhile tasks now for a more productive year ahead The end of the year is a smart time to prepare your ag business for the coming ye...


Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*