Maybe you’ve heard that because of tax reform Uncle Sam won’t let you write off the cost of golf with clients or prospects. But did you know that with tax reform lawmakers also killed the 100% business deduction for charity golf and other special charity sporting events? Want to find out more about the changes in the law and how they will affect you? Before you throw … [Read more...]
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Tax Reform Terminates Business Entertainment Deductions
Alert! The recently passed “business-friendly” tax reform package just completely killed the 50% business deduction for “directly related and associated entertainment.” That’s right. Last year you could take a prospect or client to a business dinner following the theater or a ballgame and write off 50% of the cost of the dinner and the theater or ballgame. (You just had to … [Read more...]
Tax Reform: Entertainment Deductions That Survived
First, the bad news: As we explained previously, tax reform wiped out 50 percent business-entertainment deductions. Which means you can no longer write off “directly related or associated” business-entertainment expenses. In other words, you can wave good-bye to deductible business meals, ballgames, etc., with clients and prospects. Now, for the good news: All is not … [Read more...]
How to Survive an Entertainment-Deduction Audit
It’s a fact… You don’t need a receipt for an entertainment expense that’s under $75. But don’t think the IRS is asleep at the switch. They know that a lot of folks deduct many under-$75 meals, etc., that aren’t legit. What’s more, they can smell fishy entertainment deductions a mile away and, in an audit, make your life miserable if you’re not careful. Want to learn … [Read more...]
A new way to deduct 100% of employee meals
You probably know that Uncle Sam limits most of your business-meal deductions to just 50% of what you spend. You also probably know that you can ignore the 50% limit and write off 100% of meal-costs under certain circumstances (like throwing an employee party or holding an employee meeting on your business premises). What you may not know is that because of a recent … [Read more...]