Tax Reform’s effect on meal deductions
We’ve published a lot of this topic but sometimes less is more. On the chart below, we take 12 different types of business meals and show how tax reform affects your tax deduction.
Remember, you still need to document the 5 W’s to make the deduction withstand IRS scrutiny:
- Who
- What (dollar amount and type of business expense)
- Where
- When
- Why (business purpose)
| Amount Deductible for Tax Year 2018 | |||
| Description | 100% | 50% | Zero |
| Meals with clients and prospects | X* | ||
| Entertainment with clients and prospects | X | ||
| Employee meals for convenience of the employer | X | ||
| Employee meals for required business meeting | X | ||
| Meal served at Chamber of Commerce meeting | X | ||
| Meals while traveling away from home overnight | X | ||
| Year-end party for employees and spouses | X | ||
| Golf outing for all employees and spouses | X | ||
| Year-end party for customers | X | ||
| Meals for general public at marketing presentation | X | ||
| Team-building recreational event for all employees | X | ||
| Golf, theater, or football game with your best customer | X | ||