I have some good news and some bad news. The IRS recently made a notice explaining some changes to the policy about deductions for business meals and entertainment expenses. However, there was some confusion about the specifics of what could be deductible and what could not in regards to meals and entertainment. The bad news is that any activity generally considered for entertainment, recreation, and amusement is non-deductible. The good news is that the IRS has clarified that business meals, as long as they are not considered extravagant or lavish, will still be deductible at 50%. The IRS expects to release specifics on these regulations, but until those are effective, taxpayers can look to Notice 2018-76 for any other questions.
If you have any other questions about taxes, QuickBooks, or payroll, call or visit us at Stapley Accounting.