The Internal Revenue Service issued guidance today, October 3, 2018, on the business expense deduction for meals and entertainment stating that taxpayers can continue to deduct 50% of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverage is not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact.

This is good news for business owners who were disappointed by the 2017 TCJA elimination of this deduction. The IRS also stated that food and beverages that are provided during entertainment events will not be considered entertainment if purchased separately from the event.

The IRS is expected to issue further guidance clarifying when business meals expenses are deductible and what constitutes entertainment. In the meantime, feel free to reach out to any member of your Landau Arnold Laufer team with questions by calling (631) 226-5151. And be sure to follow us on LinkedIn and Facebook to stay up-to-date on important tax breaks like this one.

Source: www.IRS.gov

Disclaimer

The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.