If you’re confused on whether you still can deduct business meals with clients, you’re not the only one.
The deduction was expected to go away when Congress passed the Tax Cuts and Jobs Act in late 2017.
But on Wednesday, the IRS clarified that the deduction for business meals is staying, while the deduction for client-related entertainment did get the ax.
“Taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered lavish or extravagant,” the IRS stated in a news release. “The meals may be provided to a current or potential business customer, client, consultant or similar business contact.”
The IRS will post more updates on the new tax law changes here.
If you have questions or would like more guidance on whether you or your business can claim certain expenses, you can make an appointment with Peekz ConsultiN online.
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Peekz ConsultiN LLC is a Pittsburgh-based accounting firm, located in the West Side, that caters to individuals, small businesses and nonprofit organizations. We aim to empower clients to help them take control of their finances and achieve their dreams.