The new Tax Reform Law has new limits on business related meals and no longer allows for deductions on entertainment expenses. The changes are indicated in the below table. Please contact your MCB Tax Advisor at 703-218-3600 to learn how these changes impact your business.
Description | Position | Support | Notes/Examples |
---|---|---|---|
Business meals while traveling | 50% deduction | IRC 274(n)(1) | Meals for business while away from home overnight |
In-office meals | 50% deduction | IRC 274(0) | Staff meals for the convenience of the employer (ie staying late); periodic breakfasts & lunches; food during CPE sessions |
Office picnic & social | 100% deduction | IRC(e)(4) | Food & beverages provided at company picnics, social events, holiday parties |
Client meals | 50% deduction | IRC 274(n)(1) | Taking a client to lunch; food while attending an entertainment event with client; Food for clients & business associates when attending an in-house educational seminar |
Public seminars | 100% deduction | IRC 274(e)(7) | Food for seminars & meetings that are used to promote the firm |
Office snacks | 100% deduction | IRC 274(0) | Considered de minimis |
Quarterly staff meetings | 100% deduction | IRC 274(0) | Food & snacks provided during staff meetings |