Back to top

Client Login

Forgot your password?

Tax Alerts

Click here to go back

Meals and Entertainment Charts

Posted by Admin Posted on Nov 19 2018

Meals and Entertainment

 

Activity

2018 Expenses
(New Law)

2017 Expenses
(Old Rules)

 

Office holiday parties,
  summer picnics

100% deductible
 

100% deductible
 

 

Entertaining clients













 

Meals 50% deductible

50% deductible

Meals with prospects
  and referral sources –
  50% deductible

50% deductible

 

Events such as theatre
  tickets, sporting tickets,
  golf outings – not
  deductible, meals 50%
  deductible, if separated
  on invoice or receipt

50% deductible




 

Charitable event tickets –
  charitable portion
  deductible, meals 50%
  deductible if separated
  on invoice or receipt

Tickets to qualified charitable
  events – 100% deductible


 

 

Business meetings of employees,
  stockholders, agents or directors

50% deductible
 

50% deductible
 

 

Expenses for attendance at a
  501(c)(6) business meeting or
  convention of a business league

Meals – 50% deductible

 

50% deductible

 

 

Employee travel meals

50% deductible

50% deductible

 

Meals provided for the
  convenience of the employer
 

50% deductible
  (not deductible after 2025)
 

100% deductible if a
  de minimis fringe benefit;
  otherwise 50% deductible

 

Examples

 

Example Activity

2018 Expenses
(New Law)

2017 Expenses
(Old Rules)

 

 

 

Meal with a client in town (not
  away from home)

50% deductible
 

50% deductible
 

 

 

 

Meal with a client while traveling
  away from home

50% deductible
 

50% deductible
 

 

 

 

All employee meeting with food
  and beverages served after

100% deductible
 

100% deductible
 

 

 

 

Open house for customers and
  employees

 

Employee portion –
  100% deductible
Customer portion –
  50% deductible

Employee portion –
  100% deductible
Customer portion –
  50% deductible

 

 

 

Company sponsors a table at a
  charitable event attended by
  employees and customers

 

Value of meals – 50% if
  separated on invoice
  or receipt
(Remainder is charitable contribution)

Meals – 50% deductible
(Remainder is a charitable contribution)

 

 

 

 

Golf sponsorship and outings
  $1,000 of which $300 is
  charitable contribution



 

Meals – 50% deductible if
  separated on invoice
  or receipt
Cost of golf – Not
  deductible

(Remainder is charitable contribution)

Meals and golf –
  50% deductible
(Remainder is a charitable contribution)


 

  • Note the cost of the meal must not be lavish or extravagant under the circumstances.
  • Assumes appropriate documentation exists in all instances.
  • Additional guidance and clarification from the IRS is still forthcoming.

Add New Comment