Congress Makes Business Meals Temporarily 100% Deductible

When Congress passed the Tax Cuts and Jobs Act (TCJA) in 2017, it significantly limited the tax benefits available to companies by eliminating the deduction for entertainment expenses and reducing the deductible amount for certain types of meals (M&E). Currently, business meals are generally only 50% deductible and entertainment expenses are fully disallowed for tax…

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New Clarity on M&E Deductions Give a Little Wiggle Room

On September 29, 2020, the IRS published the long-awaited final regulations on the deductions for meals and entertainment (“M&E”) expenses. While the final regulations are largely similar to those proposed earlier this year, there are some key changes and clarifications that could impact your company’s bottom line if you have historically taken advantage of M&E…

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Should Entertainment Expenses Be Fully Disallowed?

Although companies are no longer eligible to deduct business entertainment expenses like baseball tickets and golf outings, Notice 2018-76 was released and provides guidance that allows companies to partially deduct the meals incurred at entertainment events. It used to be ok to lump together things like games and dinners as “meals and entertainment” expenses because…

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