For those business owners who used their meal’s and entertainment deductions to generate potential business. Tax reform wiped out the 50% business entertainment deductions. You no longer deduct directly related or associated business entertainment.
Common forms of directly related & associated entertainment that are no longer deductible include business meals with clients or prospects, golf, football games, and similar business-building activities.
On the other hand. tax code section 274(e) survived the massacre. Under this section, you can deduct:
- Entertainment, amusement, and recreation expenses you treat as compensation to employees and that are included as wages for income tax withholding purposes.
- The expense for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees
Here is a link for more information: https://www.law.cornell.edu/uscode/text/26/274 (https://www.law.cornell.edu/uscode/text/26/274?fbclid=IwAR0KVeJm1z6vqY95OQKS1oU7eW7jCUXddRBIoIlctUx05pBLbX_SwDHOrhE)