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To Deduct or Not – Chart of Meals and Entertainment after Tax Reform #tax #smallbiz

Chart of Meals and Entertainment after Tax Reform

Tax reform has had a significant impact on the tax deductions you can now claim for business entertainment and meals. The chart below shows you how the Tax Cuts and Jobs Act treats 12 meal and/or entertainment events.


 Amount Deductible for Tax Year 2018
Meals with clients and prospectsX*
Entertainment with clients and prospectsX
Employee meals for convenience of employerX
Employee meals for required business meetingX
Meal served at chamber of commerce meetingX
Meals while traveling away from home overnightX
Year-end party for employees and spousesX
Golf outing for all employees and spousesX
Year-end party for customersX
Meals for general public at marketing presentationX
Team-building recreational event for all employeesX
Golf, theater, or football game with your best customerX


* Technically, the TCJA made meals with clients and prospects not deductible. We understand that the tax writers will modify the law to make “so-called non-entertainment meals” with clients and prospects deductible. We don’t know when we will see this change; therefore, track your meals with clients and prospects as if the tax writers will truly make them deductible.

I think you will find this chart helpful. If you have questions, please don’t hesitate to contact me.