Realtors have been known to take a client to lunch or to a baseball or football game and then deduct the expense as a meal and entertainment expense. This has changed. The IRS has finally issued guidance on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA) passed by Congress.
Prior to 2018, a business could deduct up to 50 percent of entertainment expenses,(base ball game or show), directly related to the active conduct of a trade or business or, if the expense happened immediately before or after a bona fide business discussion
Now under the act, this is no longer allowed. BUT you can continue to deduct 50% of the cost of a meal if you pay for it separately from the entertainment. This is also true of business meals you have with clients or potential clients. Just be sure to have your receipts.
If you or your friends have any questions regarding your taxes, contact me directly at (305) 773-0702 or by email at Mcrosacpa@gmail.com
Michael L Crosa CPA
8933 SW 123rd Ct, Unit 410
Miami, FL 33186