Meal Deduction Guidelines

The Tax Cuts and Jobs Act (TCJA) implemented several significant changes to the tax code designed to streamline and simplify regulations. Many of the changes such as the Qualified Business Income Deduction, more generous asset expensing and depreciation rules, as well as, the lowering of the corporate tax rate were welcomed by many Atlanta companies. Such changes were essential to meeting the President’s goal of making the U.S. more tax-friendly for businesses. It was not all good news, however, as one of the most common business tax benefits – the meals and entertainment expense deduction – was drastically altered. It eliminated the opportunity for Atlanta businesses to deduct business-related entertainment expenses. Unfortunately, the law didn’t specifically address meal expenses incurred during entertainment events leaving many questioning their deductibility. On October 5th, the IRS issued Notice 2018-76, which provides interim guidance on this issue.