2018 Meals And Entertainment Tax Reform Changes
Since the enactment of the Tax Cuts and Jobs Act of 2017 (the “Act”), there has been a lot of discussion around how meals, entertainment, and certain transportation benefits will be treated for businesses starting in 2018. Although the Act clearly places more strict rules around the deductibility of meals and entertainment, there are still many items that are not clear and we are waiting for additional clarification.
Given the changes in a company’s ability to deduct many meals, entertainment, and transportation costs, companies should act now to consider any internal adjustments they need to make for tracking and reporting these costs.
The following chart should be helpful in providing some guidance on how these rules changed starting on January 1, 2018.