2018 taxes – Business Meals

With the changes in 2018 taxes you may not know the latest on Business Meals.  I just found an article that helps answer this question.  The link to the original article is at the bottom.

Are business meals and entertainment still deductible?

The answer to that question is two-fold. Business meals are generally still tax deductible up to 50 percent of the cost. As of 2018, however, you can no longer deduct the cost of entertainment.

What about meals for business travel?

You can still deduct 50 percent of the cost of meals when you or your employees travel.

What is covered by the new rules prohibiting deductions for entertainment expenses?

As a general rule, dining is 50 percent deductible; entertainment is not. When dining and entertainment are combined, it gets trickier.

The new rules still allow businesses to deduct the following expenses:

  • Employee travel meals (50 percent deductible)
  • Meals provided to employees for the employer’s convenience (now 50 percent deductible; previously 100 percent)
  • Office parties and picnics (100 percent deductible)

Can employees deduct business meals as a miscellaneous itemized deduction?

No, employees can no longer claim miscellaneous itemized deductions on their income tax returns, which includes the cost of business meals.

If you are an independent contractor or freelancer, however, you can deduct 50 percent of the cost of your business meals with your business income and expenses. You should claim those expenses on Schedule C.


Tax Reform Adjustments to Business Meals and Entertainment Deductions

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