New Travel, Meals And Entertainment Expense Rules For 2019

Kim is a shareholder, an associate of the JMF Tax Department and responsible for the JMF State and Local Tax (SALT) group. With over twenty years of experience, she helps clients with corporate and business, partnership, and individual tax reporting as well as complicated multi-state sales and tax issues.

The talk of media stores because the 2018 tax slashes were passed devoted to lower tax rates and increased depreciation. However, in addition to these positive savings for companies, one significant change will potentially impact a company’s ability to provide benefits or entertain their clients or customers. The Tax Cuts and Jobs Act of 2017 (“The Act”) made significant changes to foods and entertainment expenditures.

The Act transformed Section 274 by making all entertainment expenditures, including facilities used for such activities, nondeductible, even if these expenses directly relate to, or are associated with, the conduct of business. Business meals and beverages however stay 50% deductible. Therefore, sporting events, golf outings, fishing trips, hunting outings, concerts, theater seat tickets, golf club dues, etc. are completely nondeductible even if a substantial and bona fide business discussion is associated with the activity.

Food or drinks consumed at the occasions remain 50% deductible. There continues to be a requirement that the taxpayer must confirm that business was conducted. We suggest that taxpayers might need to modify just how that business entertainment expenses are tracked in their accounting system. For instance, of posting the whole cost of the outing to “entertainment” instead, they should consider separating the drink and food portion of the event into different account. They will should also educate employees who are submitting expenses to the business to submit receipts that obviously indicate the meals and beverage portion of the activity.

The Act also states a company can still completely deduct expenditures for goods, facilities, or services that are treated as W-2 income to the employee. The employer can also fully deduct expenses paid to reimburse an employee under a reimbursement or other expense allowance arrangement that may be treated as tax-free to the employer under the “accountable plan” rules. Please, be aware that no final IRS rules have been issued yet so these are just our current interpretations of The Act as written by Congress. Please, contact your JMF accountant if you have any relevant questions.

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By evaluation, Martin’s demise is insignificant against the lives of small kids sitting on stoops eating ice-cream while bullets rip through their small bodies. Yet you do not listen to idiotic race-baiters attempting to assert that our children are being targeted by teenagers, which is truer than white people concentrating on blacks considerably. Indeed, the lamentations over the deaths of black youths are too often attributed by these hustlers to whites than with their more prevalent threats—other black youths. There is too much that is unknown here significantly.

Some which I’ve heard issues with other activities I’ve heard. How can anyone dare presume anything at this point? But this is exactly what we have in vast amounts. Presumptions, and a handful of innocence on the right part of Zimmerman. Take for example, our own Geoffrey Kruse-Safford. He could be absolutely convinced that the word “tragedy” will not apply here. How can this be?

Geoffrey wasn’t there. He doesn’t reside in Florida. He lives in northern Illinois, a distance too ideal for most people to see significantly, but evidently not for one who views what he wants to see. Geoffrey wants to see racism so he can pontificate, I assume, on white oppression of blacks, or some such crap.

New Travel, Meals And Entertainment Expense Rules For 2019
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