The tax changes for 2018 impact meals and entertainment. You may want to get help to steer through the tax maze. Although some details are still unclear, many are well-defined. You will want to check with a professional to be sure. You might want to review a few of the guidelines for the new laws:
- Charitable events tickets are no longer deductible.
- Business entertainment is no longer deductible. If you take a client to a concert, a basketball game or a movie, you cannot take the cost as a deduction. However, if you purchase food as part of the outing and it is itemized in your receipt, that is still 50% deductible.
- Meals within your company for employees at meetings or for the convenience of the employer are still deductible at 50%. So are business league meals
- Employee travel meals are also still deductible at the same percentage.
- Holiday parties and other social activities are 100% deductible.
One of the gray areas is whether you can still deduct 50% for meals taking a client to lunch. Since this is still unclear, it is important that you have proper documentation. This includes the amount you spent, the date and place, business purpose and business relationship as well as the persons involved.
Now more than ever it is important to have a CPA help you file your taxes. Les Merritt, CPA and Certified Financial Planner, has been working with business people for decades to navigate the tax maze
Contact Les Merritt and his staff to set an appointment. Call them at (919) 269-8553 today and prepare to file for 2018. Remember this is a great time to get started since meals and entertainment is just one change in the tax laws this year. This tax season the maze is even more complex and professional advice is critical.