CPA Voice: What counts as deductible when it comes to entertainment and meals

The Tax Cuts and Jobs Act meant many CPAs had to reconsider the status of meals in a business context.

“Congress moved in the Act to deny any business deduction for entertainment. And the Conference Committee Report allowed that meals ‘associated with operating’ a trade or business remain deductible,” writes Edward K. Zollars, CPA, in the May/June issue of CPA Voice.

But, as Zollars writes, the Committee Report cited one example where the meal is still related to travel, a class no one would have doubted was an allowed expense.

“That leaves open the far less easy to resolve question regarding what other meals remain deductible,” Zollars writes.

Read the article online now to learn the details of what counts as deductible and what is still to be decided.

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May/June 2018 exam