I am a member of the American Institute of Professional Bookkeepers (AIPB). They publish a really great monthly newsletter and I received the latest one a few days ago. The very first article discusses how “many more business meals are deductible” under the Tax Cuts and Jobs Act (TCJA):
“New limits on meal and entertainment deductions appear to increase the number of situations in which business meals are deductible, according to recent IRS Notice 2018-76…
“…tax attorneys at a recent conference pointed out that the old requirements [for business discussion] do not appear in the new rules spelled out in Notice 2018-76.
“All that is required under the IRS Notice is that there be a current or potential business relationship. The business has to show only that there was some hope for a business relationship at the time, even if one never materialized.”
The old rules required a business discussion to take place either before, during, or after the meal. The TCJA has apparently removed this requirement. This does appear to be good news. However, please consult with your own tax expert before having a potentially deductible meal with a client, customer, etc.
Learn more about the American Institute of Professional Bookkeepers here.