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|