Over the years, businesses have become accustomed to the benefits of deducting its business-related meals and entertainment expenses. However, the Tax Cuts and Jobs Act of 2017 enacted changes to the deductibility of qualified meals and entertainment that every business should take note of. Check out the changes below in a side-by-side comparison of past and present laws:
To maximize tax deductions and save time on tax preparation of your 2018 tax returns, Doeren Mayhew recommends updating your general ledger with separate accounts for business meals (50 percent deductible), entertainment (nondeductible) and recreational/social employee expenses (100 percent deductible).
Still have questions about meals and entertainment deductions? Contact the tax advisors at Doeren Mayhew.
Want to reach the author? Email Mark Kruczek or contact him at 248.244.3276.
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