Our colleague James W. Minorchio has written a client alert about recent Internal Revenue Service guidance that clarifies when meals or drinks will be allowed as a deductible business expenses following the changes made by the Tax Cuts and Jobs Act. The TCJA generally disallowed any deduction for expenses related to entertainment, amusement or recreation. But the law did not specifically address the deductibility of business meals or the food and beverage expenses incurred in connection with a sporting event, recreation or other entertainment. Now the IRS has issued transitional guidance in Notice 2018-76 that sets forth a clear test for determining whether a business expense for food and beverages is deductible. You can read the client alert here.
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