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.

DescriptionPositionSupportNotes/Examples
Business meals while traveling50% deductionIRC 274(n)(1)Meals for business while away from home overnight
In-office meals50% deductionIRC 274(0)Staff meals for the convenience of the employer (ie staying late); periodic
breakfasts & lunches; food during CPE sessions
Office picnic & social100% deductionIRC(e)(4)Food & beverages provided at company picnics, social events, holiday parties
Client meals50% deductionIRC 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 seminars100% deductionIRC 274(e)(7)Food for seminars & meetings that are used to promote the firm
Office snacks100% deductionIRC 274(0)Considered de minimis
Quarterly staff meetings100% deductionIRC 274(0)Food & snacks provided during staff meetings
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