Updates To What’s Deductible This Year

SkynarBookkeeping

New year, new rules on deductibles. Before you sit down to work on your taxes (or with your accountant), remember that some of the deductibles revolving around meals and entertainment have been UPDATED. We want to keep you up-to-date with the most recent information possible. Use the handy chart below to know what you can deduct and what’s not an option anymore.

You’ll notice that the majority of changes are with business trips or meals. Your good ‘ole office snacks and beverages are still 100 percent deductible. It’s important to be honest with your deductibles. Use them to your advantage, but use them honestly.

Type of Meal/Entertainment Prior Rule Current Rule Category
Business entertainment trips or events 50% deductible Nondeductible Entertainment
Tickets to charitable events 100% deductible Nondeductible Entertainment
Business meals with associates, clients, customers, or prospects 50% deductible Nondeductible Entertainment
Employee travel meals 50% deductible 50% deductible Travel meals
Meals for business leagues (Chamber of Commerce, Boards of Trade, and so on) 50% deductible 50% deductible Travel meals
Meals for meetings with employees, stockholders, agents, directors) 50% deductible 50% deductible Office meals
Meals provided for convenience of employer 100% deductible 50% deductible Office meals
Employee events (holiday parties, summer outings, social/recreational activities) 100% deductible 100% deductible Company events
Office snacks and beverages 100% deductible 100% deductible Groceries