Business entertainment expenses are gone. No more tax deduction for golfing under the new law. Let's look at the old laws, new laws, and what you can still deduct.
You got a 50% deduction for an expense that was directly related to the active conduct of your business, you were allowed a deduction for an activity considered to be entertainment, amusement, or recreation. 50% is not everything but it was still something and usually worth the expense to do some business while ‘entertaining’.
No deduction is allowed for entertainment, like golf, sports tickets, show tickets, etc. More specifically, no deduction is allowed for
Entertainment deductions still allowed
Some write-offs stayed through IRC Section 274(e); however, most businesses will find the benefit very limited. The write-offs allowed are
What you need to change today in Xero
With the changes in the tax code comes changes to your accounting. We want to see these revisions to your Xero (or other cloud software) file
Knowledge is Power
Maximize your deductions under the tax law by understanding the changes and how your bookkeeper reports it. This allows Why Blu to optimize your returns.
CPA + Partner at Why Blu