Written by Robin Bodine, CPA & Sandra Nonnenmocher, CPA, MST
The Tax Cuts & Jobs Act had a significant impact on what businesses can deduct for meals and entertainment. Below are some of the common questions we receive from clients.
Is it tax deductible to pay for an employee’s parking pass?
No
Is it tax deductible if an employer to pay for an employee’s transit to work?
No
If my business has a public open house to generate business can I deduct the cost of the food and beverages?
Yes. Under the new tax law, meals provided to the public to generate business are 100% deductible.
Can I deduct my country club dues if my goal is to generate business and leads?
No, membership fees and dues are not deductible even if business is discussed.
Is my company’s holiday party deductible under the new tax law?
Yes, traditional recreational employee meals like those at an employee picnic or corporate holiday party are 100% deductible.
If I buy tickets to a sporting event and give them to a client can I deduct the cost?
No, tickets to sporting events are considered entertainment and are not deductible under the new tax law.
If I am traveling for business and I need to get my suit dry cleaned can I deduct the cost?
Yes.
Do you have additional questions about the meals & entertainment tax deductions? Contact your accountant directly or click the button below to start a conversation with us!
