Are you unsure of what meal and entertainment expenses you can deduct as a legitimate business expense?
The IRS recently issued final regulations on the allowable deduction for meals and entertainment.
The final regulations address business meals provided at or during an entertainment activity.
The final regulations also incorporate other statutory requirements taxpayers must meet **to deduct 50 percent** of an otherwise allowable food or beverage expense.
Specifically, the expense must not be lavish or extravagant under the circumstances, and the taxpayer, or an employee of the taxpayer, must be present at the furnishing of the food or beverages.
The final regulations also address the general requirement that the food and beverages be provided to a business contact, which was described as a “current or potential business customer, client, consultant, or similar business contact.”
This requirement is to ensure that the meal expenses are directly connected with or pertaining to the taxpayer's trade or business.
Contact Elite Tax Defense at 833-660-1159 for more details.