The Tax Cut and Jobs Act really changed how deductions work. It's important to know how much those changes will affect you and your business. Here's another way taxes have changed recently:
Tax Update #2: Entertainment Deductions? Nope.
Do you like to take your clients to sporting events or theater shows? How about a round of golf? It’s an important part of client relations and building ties with your customers.
You’ll still be able to do these things -- but unfortunately, you’re no longer allowed to write them off at the end of the year. This new law gets rid of entertainment deductions, though it does retain the write-off for half the amount spent on meals.
That means if you’re going out for breakfast, lunch, or dinner, half of the amount spent for a business meal is deductible. Additionally, if you decide to buy some hotdogs at the game, those can still be counted -- as long as it is counted separately from the tickets that got you in the game. This doesn’t mean you should stop treating your clients, but it does mean that you’re on your own when you’re searching for tickets on StubHub.
Ready to talk to someone who can help you sort through the changes to the tax code?