As time goes by, tax practitioners are coming to better understand some of the significant changes brought about by the new tax act, which became law in late December. Among these changes are a significant reduction of the tax deductibility of business meals and entertainment.
To summarize, the old rules generally allowed a 50% deduction for business meals and entertainment. The new rules, in general, specifically deny any deduction for these expenditures. This is a very broad provision with few exceptions. This disallowed entertainment will include items such as tickets and boxes to sporting events along with everything else. We’re not sure this change will keep businesses from dining with and entertaining their clients and customers, but it isn’t deductible any longer beginning in 2018.
Our colleague, Jennifer Youngblood at our sister firm, Maddox, Thomson & Associates has written a brief explanation of these confusing new rules. To read the article, please click here. If you have further questions, you can contact us or you can reach Jennifer or one of our other colleagues at Maddox Thomson by email at info@MaddoxThomson.com.
Horizon Advisors is a Houston based fee-only wealth management firm. Horizon is a fiduciary advisor. We specialize in helping successful individuals and families understand, organize, and manage their often complex financial situations. Horizon offers integrated financial planning and investment management services.