I just read a cpa2biz.com article on entertainment that said business meals consumed at Lions Club and Rotary Club meetings are not subject to the 50% cut that generally applies to business meals. Is this true? (B.A., Long Beach, CA)

No! Business meals consumed at business leagues and civic clubs, like Lions and Rotary, ARE SUBJECT TO the 50% cut that applies to business meals. IRC section 274(n)(2) contains the exemptions from the 50% rule. This section ... Log in to view full article.