What is still deductible?
There are several items and purchases that will still be deductible under the 2018 tax reform laws. For instance, holiday office parties are still 100% deductible. However, meals that you provide are only 50% deductible. Business meals with clients during the holiday season are 50% deductible – but your meal cannot include or must be separate from any entertainment costs. If you’re curious about employee gift cards or certificates, talk to us. These are still deductible to a certain extent.
What’s no longer deductible?
While entertaining your clients is a nice gesture, it’s important to note that these types of meal and entertainment expenses are no longer deductible. If you’re considering spending your business’s money on sports tickets or other entertainment gifts for a client, think twice.
Should I mention my holiday expenses to a business tax preparation service?
Certainly. A tax preparation service can help you determine the category of a holiday expense falls under and whether you can use one as a deduction. In fact, it’s recommended that you speak with a tax service provider about these and other expenses so you can make the most of your business taxes.