NEWS & UPDATES IN THE ACCOUNTING WORLD

Changes were made to the deductibility of meals & entertainment during the COVID era to help small businesses and try to boost the economy. In 2023, meals & entertainment have reverted back pretty close to where they were pre-COVID. There are three categories of Meals & Entertainment deductions we'll describe in more detail below;

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Meals-100% Deduction

Food provided at company events, for public goodwill, and at charitable events are 100% deductible. Food purchased that is an essential part of your business or is provided at the convenience of the employer is also completely deductible.​

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Meals-50% Deduction

Business meals, meals provided during in-office meetings, in-office snacks, and travel meals, are only 50% deductible.

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Entertainment-Not deductible

As defined by the IRS, "any activity which is of a type generally considered to constitute entertainment, amusement, or recreation, such as entertaining at night clubs, cocktail lounges, theaters, country clubs, golf, and athletic clubs, sporting events, and on hunting, fishing, vacation, and similar trips…." are not deductible.