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Asked by: Naikari Diaz Caneja
personal finance personal taxesIs employee entertainment deductible?
Similarly, are entertainment expenses deductible?
Starting in 2018, the costs of entertainment expenses will no longer be deductible. Starting in 2018, the costs of entertainment expenses will no longer be deductible. Under the old tax code, 50% of the entertainment expenses were deductible.
Additionally, what entertainment expenses are deductible in 2018?
Prior to 2018, under pre-TCJA law, a taxpayer could generally deduct: 50% of business meals and entertainment and. 100% of de minimis meals provided to employees for the convenience of the employer (i.e. de minimis fringe benefit)
Under the prior law, expenses for meals were generally deductible at 50% so long as they were connected to business and otherwise met the deductibility criteria. In that case, if food and drinks are purchased or stated separately from the entertainment, the cost of the food and drinks would remain deductible.