Tax Reform: Changes to Meal and Entertainment Expenses

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Tax Reform for Meals & Entertainment Expenses - Changes

We want to alert business owners, clients and readers to an important change under the new tax reform commonly known as the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act (TCJA) enacted extensive changes to the deductibility of meals and entertainment (M&E) expenses for companies. Prior to the new tax reform, companies generally could deduct 50% of expenses for business-related meals & entertainment expenses. With the enactment of the TCJA, entertainment expenses paid or incurred after December 31, 2017 are no longer deductible.