Business meals provided for the convenience of the employer are now only 50% deductible whereas before the Act they were fully deductible. Barring further action by Congress those meals will be nondeductible after 2025.
Businesses should keep the new rules in mind as they plan their 2018 meals and entertainment budgets.
2018 Expenses – New Rules
- Office Holiday Parties – 100% deductible
- Entertaining Clients – Meals 50% deductible / No deduction for entertainment expenses
- Employee Travel Meals – 50% deductible
- Meals Provided for Convenience of Employer – 50% deductible (nondeductible after 2025)