Article Date:
January 2018


Word Count:
844

 

 

Tax Reform: Entertainment Deductions That Survived


As you know from Tax Reform Wipes Out 50 Percent Business Entertainment Deductions, you may no longer deduct directly related or associated business entertainment.

 

Common forms of directly related and associated entertainment that are no longer deductible include business meals with clients or prospects, golf, football games, and similar business-building activities.

 

That’s the bad news.

 

The good news is that tax code Section 274(e) pretty much survived the entertainment bloodletting. Under this section, you continue to deduct

 

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entertainment, amusement, and recreation expenses you treat as compensation to employees and that are included as wages for income tax withholding purposes;1

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expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees (other than ... Log in to view full article.

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