With all that the Tax Cuts and Jobs Act (TCJA) cracks down on for entertainment deductions, a business can still write off the full cost of a company picnic or barbecue as long as certain requirements are met.
Previously, you could deduct 50 percent of the cost of entertainment that was directly-related-to or associated-with your business. Notably, the latter included expenses that immediately preceded or followed a substantial business meeting.
For instance, if you negotiated a contract in the morning and then treated the clients to a boat trip or golf outing in the afternoon, 50 percent of the qualified expenses were deductible – even drinks at the 19th hole or the fish bait. In addition, a business was allowed to deduct 100% of the cost of providing subsidized meals at a company cafeteria or similar eating facility.
About Ken Berry
Ken Berry, Esq., is a nationally known writer and editor specializing in tax, financial, and legal matters. During his long career, he has served as managing editor of a publisher of content-based marketing tools and vice president of an online continuing education company. As a freelance writer, Ken has authored thousands of articles for a wide variety of newsletters, magazines, and other periodicals.