Tax Plan Analysis: for Business – Meals & Entertainment

Tax Plan Analysis: for Business – Meals & Entertainment

Meals and Entertainment

I have gotten a LOT of questions regarding this because there have been a number of changes in this area. Thus, I thought I would post something that you should print out as a reference, which should address most of your questions:

Amount Deductible for Tax years 2018 -2026

  1. Meals with clients/prospects : 50%
  2. Entertaining Clients/prospects: ZERO
  3. Employee meals for meeting : 50%
  4. Employee snacks and food : 50%
  5. Meals served at association meeting such as Chamber of Commerce: 50%
  6. Meals incurred while traveling on business 50%
  7. Year end party for employees and spouses 100%
  8. Golf outing for employees: 100%
  9. Year end party for customers: Zero
  10. Meals served at marketing presentation or opportunity meeting ; 100%
  11. Meals served at “Open House:” 100%
  12. Team building events for employees: 100%
  13. Golf, theater sports events with customers : Zero
  14. Paid seminars by customers where food is included: 100%

Hopefully, this should answer just about any question dealing with different types of meals and entertainment.. Also, there is some confusion as to the deductibility of meals with prospects. However, the majority of tax professionals believe that this deduction survives.

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