Recent Posts:Entertainment Expenses are NOT Deductible but Meals are
Sec. 274(k), which was not amended by the TCJA, does not allow a deduction for the expense of any food or beverages unless (1) the expense is not lavish or extravagant under the circumstances, and (2) the taxpayer (or an employee of the taxpayer) is present when the food or beverages are furnished. Sec. 274(n)(1), which was amended by the TCJA, generally provides that the amount allowable as a deduction for any expense for food or beverages cannot exceed 50% of the amount of the expense that otherwise would be allowable. The interim guidance explains taxpayers may deduct 50% of an otherwise allowable business meal expense if:
The IRS will not allow the entertainment disallowance rule to be circumvented through inflating the amount charged for food and beverages. The notice includes three examples illustrating how the IRS will view these rules. All three examples involve attending a sporting event with a business client and having food and drinks while attending the game. Thank you for taking the time to read this e-alert. If I can be of service, please do get in touch by e-mail or telephone.
CEO & Founder Global Taxes LLC Tax Advisory & Compliance Services Tel: 212 803 3327 Cell: 917 834 9307 WhatsApp: 917 834 9307 Email: alicea@globaltaxes.com
www.linkedin.com/in/ Please note: This content is intended for informational purposes only and is not a replacement for professional accounting or tax preparatory services. Consult your own accounting, tax, and legal professionals for advice related to your individual situation. Any copy or reproduction of our presentation is expressly prohibited. Any names or situations have been made up for illustrative purposes — any similarities found in real life are purely coincidental. Alicea Castellanos | 02/05/2019
|