The Tax Cuts and Jobs Act (TCJA) imposes new limitations on meals and entertainment expenses that are deductible. The changes under the TCJA could have an impact on your tax position and modify how these expenses are recorded.
The deduction for meals is limited under the TCJA for expenses incurred or paid after December 31, 2017. Meals that are accompanied by entertainment, or where business is not discussed, are now nondeductible. Under prior law, these types of expenses were allowed a 50% deduction. Employee meals provided for the convenience of the employer are now 50% deductible and become completely nondeductible after 2025; prior to the TCJA they were fully deductible.
Download our meals and entertainment chart to learn more: