Our thanks go to our friends at www.cpataxmag.net for the following explanation of how tax reform has changed entertainment deductions. The key point to remember is that deductions for amusement, entertainment, or recreation are gone in 2018. So, as shown below, don’t be amused, entertained, or have any enjoyment at your business meal.
Businesses might need to cut back on taking clients to sporting events like golf outings and football games after the new tax act ended a tax break for such entertainment. The tax overhaul eliminated a 50% deduction for business-related expenses for “entertainment, amusement or recreation.” This means luxury boxes at stadiums and arenas, along with theater and concert tickets, will be more costly for clients.
While eliminating the deduction will restrict professionals who promote their business by entertaining clients, the 50% of meal deduction is still intact although still subject to strict documentation requirements.
- SBA Disaster Loans- Are they right for your business?:
We'll show you how they work- March 26, 2020
- Small Business Alert!:
New rules apply to certain unemployment claims!- March 19, 2020
- The truth about price-cutting- it’s not what you think:
Watch as we crunch the numbers - you'll be shocked- February 29, 2020