A while ago the AICPA requested that the IRS clarify the state of some deductions, in particular meals and entertainment, for the coming tax year. Well, we finally have an answer. Businesses can still deduct 50 percent of meals while entertaining clients. Additionally, meals purchased during entertainment events can also be deducted, but there is a catch. A meal can only be deducted if it is shown on a separate receipt.

An Example

For example, a meal bought after an event can be deducted. A meal that is included with box seats for a sporting event is not deductible.

Sources

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