15 Feb Meals and Entertainment: What’s Deductible for Your Business?
Qualifying deductions for your business expenses are changing for 2018 and future tax years. Do you know what entertainment expenses are still deductible? This blog will address the meals and entertainment expense for business tax deductions, explaining the changes between 2017 and 2018 tax returns. If you are filing a business tax return in Provo, please be sure that you are aware of these changes for the future and as you make financial decisions for your business throughout the year.
2017 Meals and Entertainment Deductions
For your 2017 business tax return, meals and entertainment could generally be deducted at 50% of the actual cost. And, occasionally, meals could be claimed at 100% of the cost. These costs had to be associated with your business’s growth, and common qualifying expenses included items such as taking a prospective business partner or client to dinner.
If you’re claiming any of these types of deductions on your current business tax return, please be certain to keep appropriate receipts and any other items detailing the expenses.
2018 Meals and Entertainment Deductions
For the current tax year, and business tax returns filed for the foreseeable future, the entertainment deduction is being significantly reduced for businesses. Meals can only be claimed for 50% of the cost, with no opportunity for a higher claim on the expense. Entertainment expenses are being eliminated altogether and can no longer be claimed as a deduction on future tax returns.
It is important to keep these changes in mind as you make decisions for your business throughout the year. If you have any questions regarding the changes made to this particular deduction, need assistance with 2018 tax planning, or wish to file your 2017 business tax return in Provo, please contact us to make an appointment. One of our experienced CPAs can provide you with the assistance you need.