Under the 2018 “Tax Cuts and Jobs Act,” business entertainment expenses such as golf outings, entertainment dinner and other meal expenses, sporting events, concert tickets or sky boxes, etc. are no longer deductible.
Please consult your CPA or other tax expert for a complete explanation of the new Rules for deducting all business related expenses under the 2018 “Tax Cuts and Jobs Act.” As always, you should keep receipts related to this and all other business-related expenses.
Meals expenses associated with out-of-town business travel are still deductible (subject to the 50% deduction limitation). Qualifying for travel meals requires an overnight stay. The only substantiation required is proof that you were out-of-town (hotel bill, airline tickets, gas receipt etc.).
There are two options available for deducting out-of-town meals. You may deduct actual meal expenses or elect to take a daily per diem in lieu of actual expenses. In 2017, that per diem was $57 per day in most cities. The per diem rate may be changed by IRS from year to year. Cities such as Los Angeles, New York City, Las Vegas, etc. have higher per diem rate allowances. Go to www.irs.gov and search “Publication 1542 Per Diem Rates” and print it off to get a list of per diem rates by city. If your spouse is your partner in the Business, you also get a daily per diem for your spouse as well. For example, if leave town for a function on Friday and return on Sunday, that is 2 per diems for you and 2 per diems for your spouse.