Tax deduction clarified: Meals and Entertainment
In 2018 the IRS provided clarification on the ability (or inability) to deduct meals and entertainment for business expenses. Unfortunately entertainment was considered no longer deductible while meals still remained at 50% deductible. If your meals and entertainment were a package purchase (i.e. baseball game with prospective client) be sure to get an invoice separating the cost of the food from the venue. As long as the cost of the food is listed separately you can take the 50% meals deduction. If; however, your meals cost were included in the venue (i.e. meals provided in suite at baseball game) you cannot make that deduction. Always remember, receipts are key to ensuring your taxes are valid and even though they can feel like a nuisance they can prevent many headaches and steep costs including fees, penalties and interest on tax amounts owed on top of the fee you'll pay your tax accountant to amend your return.