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. Now the only requirement is for the hope of a business relationship.
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.