Employee Meals

Reduced from 100% to 50% deductible: Meals for employees that are for the convenience of the employer used to be 100% deductible. They are now only 50% deductible.  You should enter these expenses as an ‘other expense account’ named Employee and Travel Meals.

Company Picnic or Holiday Events

Reduced to 50% deductible:  Meals for company events should be recorded as Employee and Travel Meals, but only 50% of the expense is tax-deductible.

Travel Meals

Reduced to 50% deductible:  These expenses should be posted as Employee and Travel Meals

Meals and Entertainment for Marketing or Planning Purposes

No Deduction Allowed in 2018: In 2017, 50% of meals could be deducted, but not anymore!  These will now be non-deductible expenses.

Meals sold to the General Public

Meals that are sold to the general public, like the cost of putting on an event, are 100% deductible.

Meals that are the cost of providing a services are 100% deductible.

Tax-Free Gifts to Employees are no longer allowed. No cash, gift cards, coupons, or meals.