The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated the deduction for any expenses related to activities generally considered entertainment, amusement, or recreation and also limited the deduction for expenses related to food and beverages provided by employers to their employees.
The IRS has recently issued final regulations on the business expense deductions for meals and entertainment following changes made to the TCJA.
These regulations address the elimination of the deduction for expenditures related to entertainment, amusement, or recreational activities and provide guidance to determine whether an activity is considered to be entertainment. The final regulations also address the 50% limitation on the deduction of food and beverage expenses and when the 50% limitation does not apply.
DESIGNED FOR
Tax practitioners who anticipate advising clients with respect to client and employee provided entertainment expenses, professional dues and entertainment facilities.
BENEFITS
- IRS rules relating to the nondeductibility of activities considered entertainment or amusement
- What constitutes entertainment for tax purposes?
- When are meals deductible — 50% and 100%?
- When employers may deduct food and beverages provided to employees
HIGHLIGHTS
- Understand the new rules relating to the deductibility of expenses associated with meals, entertainment, and food and beverages that employers provide to employees
COURSE LEVEL
Basic
PREREQUISITES
A basic understanding of the tax rules relating to individual income tax
ADVANCE PREPARATION
None