Tax Cuts and Jobs Tax Act of 2017 vs. Meals and Entertainment Expenses
Effective January 1, 2018 the IRS has dramatically changed the way business owners record and deduct Meals and Entertainment:
Entertainment expense is no longer deductible.
Business meals remain 50% deductible.
Items benefiting employees (not the owners) such as recreational/social activities (i.e., Christmas parties) are deductible at 100%.
Accordingly I suggest setting up in your chart of accounts effective 1-1-18 three new charts of accounts:
-Entertainment Expense (not deductible).
-Business Meals (50% deductible)
-Recreational/Social Employee Expense (100% deductible)
