Want to take a client or a business prospect to lunch at a trendy restaurant?
Go right ahead and enjoy the meal. Just don’t expect Uncle Sam to help pay for it.
You see, thanks to recent so-called business-friendly tax reform, you can no longer deduct business meals. Those write-offs are dead and gone.
Oh. I know. Some continuing education courses teach that business meals are still deductible. But they’re wrong as I’ll prove (with citations from applicable authorities) when you read my new article titled Tax Tips: Yes, Tax Reform Did Kill Prospect and Client Meal Deductions!
Three ways our fact-filled article can help you:
- We’ll provide you with an informative brief history of the law. Back in 1986, the Tax Reform Act added the business meal with a client or prospect to the entertainment rules. The 1986 law required either a directly-related business discussion (or a meal associated with such a discussion) for the meal to qualify for a write-off. And that was just for starters. We’ll provide important historical context when you read the full article.
- We’ll explain how the new tax reform law disallows client and prospect meal deductions. The language of the law couldn’t be clearer. It states that “no deduction is allowed …” and that “the provision repeals the present law …” We’ll provide the complete text and cite full chapter and verse when you read the full article.
- You’ll get three real-world examples of how the law has slammed the door on business-meal deductions. Sam takes Silvia out for lunch … dentists Sara and Jim discuss new equipment over a meal … Fred takes a client out to help him with business planning. And no one gets a deduction! We’ll explain why when you read the full article.