The 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.