The new tax act provides for stricter limits on the deductibility of business meals and entertainment expenses.  Here’s what you need to know:  

2017 Expenses

(Old Rules)

2018 Expenses

(New Rules)

Office Holiday Parties

100% deductible 100% deductible

Entertaining Clients - Meals

50% deductible 50% deductible

Entertaining Clients - Amusement & Recreation

50% deductible No deduction

Tickets to Qualified Charitable Events

100% deductible No deduction

Meals Provided to Staff

100% deductible 50% deductible

Out of Town Employee Travel Meals

50% deductible 50% deductible

Employee Qualified Transportation

100% deductible

No deduction**

**No deduction for the business, but it remains nontaxable to the employee