News

BUSINESS MEALS DEDUCTIBLE AGAIN

• When deductions for an activity considered entertainment, amusement or recreation were disallowed by the 2017 tax law, initially business meals – and beverages – were deemed to be entertainment. • Now the IRS has issued guidance stating that business meals still are deductible under the new tax law, subject to the 50% limit. • For a meal to be deductible, a company employee must be present, and neither food nor beverages can be extravagant or lavish. • Meals or beverages purchased separately during an entertainment event are similarly deductible. IRS (Notice 2018-76) https://www.irs.gov/pub/irs-drop/n-18-76.pdf