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

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)