Skip to Content

Tax reform restricts tax deductions for meals, entertainment, and fringe benefits

February 13, 2018 Article 1 min read
Authors:
Michael Monaghan Emily Murphy
Recent tax law changes may compel taxpayers to make immediate changes to expense tracking procedures to ensure they are capturing information necessary to accurately determine their tax deductions.

Image of pen on W-9 Form

Recent tax law changes may compel taxpayers to make immediate changes to expense tracking procedures to ensure they are capturing information necessary to accurately determine their tax deductions. The Tax Cuts and Jobs Act (TCJA) made several significant changes to deductions for meals, entertainment, and employee fringe benefits. In general, the changes disallow deductions for entertainment, reduce the benefit to 50 percent for most meal expense deductions, and limit the deductibility of employee fringe benefits. These changes are effective for amounts incurred or paid after Dec. 31, 2017.

The information provided in this alert is only a general summary and is being distributed with the understanding that Plante & Moran, PLLC, is not rendering legal, tax, accounting, or other professional advice, position, or opinions on specific facts or matters and, accordingly, assumes no liability whatsoever in connection with its use

Related Thinking

Two tax professionals standing on steps discussing cost segregation.
June 6, 2024

Real estate company saves $2.3 million in taxes using cost segregation

Case Study 2 min read
Aerial view of Washington D.C. at dusk.
June 6, 2024

4 ways to monetize Inflation Reduction Act tax credits

Article 7 min read
Birds flying above water in front of a U.S. government building.
May 29, 2024

State and local tax advisor: May 2024

Article 30 min read