Checklist: Meals and Entertainment Tax Deduction in 2019

By Darren Reed | Oct 02, 2019

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INSIGHTS/BLOG

MandEThe Tax Cuts and Jobs Act of 2017 brought about many tax changes, one of which is what and how much of your meals and entertainment expenses are deductible. At a high level, beginning in 2018, entertainment expenses are no longer deductible and the majority of meal expenses are now deductible at 50%.

We first wrote about these changes in this blog post a year ago- and the following checklist provides further clarification on the new rules.

Category Previous Deduction Deduction as of 2018
Entertainment: tickets for sporting events, theater, etc.; club expenses; golf course fees; hunting or fishing trips; etc. 50% 0%
Meals with clients where business is discussed 50% 50%
Meals with clients where business is not discussed (this is classified as entertainment) 50% 0%
Meals with employees where business is discussed 50% 50%
Meals with employees where business is not discussed (this is classified as entertainment) 50% 0%
Food and snacks provided for employees (not considered part of compensation) 100% 50%
Company picnics and parties 100% 100%
Meals for employees while they are on business travel 50% 50%
Meals and entertainment included in an employee's compensation package 100% 100%

Do you have questions on how to classify your meals and entertainment expenses? Contact Sweeney Conrad’s Senior Tax Associate Darren Reed at dreed@sweeneyconrad.com.