The Tax Cuts and Jobs Act (TCJA) ushered in significant changes to familiar business expenses . . . expenditures for meals and entertainment.  This Tax Planning Letter, as well as Part 1 (#356), seeks to demonstrate that, while the deductibility of many entertainment expenses have been terminated after 2017, some do remain.  A number of meal expenses also evade the clampdown. Part 2 covers: the rules for the deduction of employer-provided employee meals on company premises, and genres of expenses exempt from statutory restrictions on meals and entertainment See Part 1 (#356) for an overview of TCJA changes and a discussion of whether a so-called ''business meal'' (one in which a substantial and bona fide business discussion is present during the event) continues to be deductible...

The Tax Cuts and Jobs Act (TCJA) ushered in significant changes to familiar business expenses . . . expenditures for meals and entertainment.  This Tax Planning Letter, as well as next month’s Part 2, seeks to demonstrate that, while the deductibility of many entertainment expenses have been terminated after 2017, some do remain. Likewise, while some meal expenses are also spared non-deductbility, questions linger as to the deductibility of the most familiar type of meal expense . . . that being the so-called "business meals" during which a meaningful and authentic discussion of business is present during the meal. Part 1 provides an overview of the changes brought about by TCJA and analyzes whether a "business meal" can continue to be deducted under TCJA. Part 2...

As posted by Thomson Reuters on 2/13/18 Before the Tax Cuts and Jobs Act (TCJA), taxpayers could generally deduct 50% of business-related meal and entertainment expenses, and exceptions allowed bigger deductions in certain circumstances. The TCJA shifts the playing field for expenses paid or incurred after 12/31/17. This Tax Planning Letter explains how meal, food and beverage, and entertainment expenses were treated under prior law and how they are treated now. Under prior law, taxpayers could generally deduct 50% of business-related meal and entertainment expenses incurred or paid before 1/1/18 (former §274(n)). Taxpayers had to establish that the expenses were directly related to or associated with the active conduct of a trade or business or income-producing activity. The general 50% deductibility rule applied to all business-related meals...