One of the many changes to the tax code modifies the deductibility of meals and entertainment expenditures by businesses. The following modifications apply to tax year beginning after December 31, 2017.
Below is a list of updated provisions for meal and entertainment expenditures under the new tax law:
- Entertainment expenses are not deductible unless specific exceptions are satisfied.
- Office holiday parties remain 100% deductible under the new tax law.
- Meals paid for while entertaining clients remain 50% deductible.
- Meals provided for the convenience of the employer are reduced to 50% deductible. After 2025, these meals will no longer be deductible.
- Expenses for meals incurred by an employee while traveling remain 50% deductible under the new law.
Please consult your tax advisor for specific issues regarding your personal tax situation. If you have any additional questions, please contact Brian Reed at 314.576.1350.