It’s a sad fact…
The Tax Cuts and Job Act took a big bite out of a bunch of valuable business-meal and entertainment deductions.
One really nice one that that took a 50-percent hit was the “supper money” deduction.
What is that? It’s the fringe benefit that lets you provide your employees (and yourself!) with tax-free meal money when you’re working late.
That’s right. If you know how to follow the four rules that govern the super-money deduction, you can write off half of the cost of dinner.
Want to eat, drink, and be merry? Read my new article titled Tax Tips: What Did the TCJA Do to Your Tax-Free Supper Money?
Four rules you need to know now:
Rule #1: Make sure your dinners are “occasional.” We’ll give you four important guidelines to follow when you read the full after-tax-reform article.
Rule #2: Keep the cost of meals “reasonable.” Uncle Sam doesn’t specify a dollar limit on spending, but don’t splurge when it isn’t appropriate. You’ll get the details when you read the full after-tax-reform article.
Rule #3: Be sure you’re working overtime before you dig in. The IRS requires that the meal allowance must enable your employees to work overtime. (You can come out a winner too!) You’ll get the whole story when you read the full after-tax-reform article.
Rule #4: Don’t calculate the cost of the meal based on the number of hours your employees work. For example, you can’t give a $20 allowance per hour of overtime. Instead, provide a reasonable discretionary meal allowance. You’ll find out more when you read the full article.