REPEAL OF ENTERTAINMENT DEDUCTIONS

Dec 5, 2019 | News, Personal Finance, Tax

The Tax Cuts & Jobs Act (TJCA) repealed the deduction for business entertainment beginning in 2018.  This includes expenditures for taking clients to sporting events and shows, and paying for season tickets for various sporting events.   Generally, any dues for social clubs such as country clubs or athletic clubs will also be non-deductible.

Most business-related meals will be 50% deductible.  If no business is discussed, the meal is not deductible for tax purposes and should be classified as entertainment.

Deductions will be permissible for sponsorship payments, net of the fair market value of any meals and entertainment, as well as for payments for professional dues and meetings such as civic organizations, trade associations and professional organizations.

Proper classification of the above-cited expenditures will be important for proper tax reporting.  Accordingly, it is essential to have your company’s internal accounting set up appropriately.  Please contact us if you would like assistance in identifying and classifying these expenses to treat them correctly on your tax return.

By Terri L. Marakos, CPA

Landsman Uniforms & Embroidery

Landsman Uniforms & Embroidery

Landsman Uniforms and Embroidery is excited to share the story of our business - a tale of resilience, passion, and a commitment to serving customers in Atlantic County for three generations. The family business began in 1932 when William Landsman opened a general...

read more
Money Watch: Elder Financial Exploitation

Money Watch: Elder Financial Exploitation

Technology has been a huge benefit to people across the world, but it has also led to a dramatic increase in the scope and size of Elder Financial Exploitation (“EFE”). The Financial Crimes Enforcement Network (“FinCEN) defines EFE as the “illegal or improper use of...

read more
Beneficial Ownership Information Reporting

Beneficial Ownership Information Reporting

On September 29, 2022, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCen) issued a final rule implementing the bipartisan Corporate Transparency Act’s beneficial ownership (BOI) reporting provisions.  The new rule will require business...

read more