Free 2018 Tax Planning2019-01-05T15:05:52+00:00

Free 2018 Tax Planning

Entertainment expenses

Prior to the 2018, taxpayers could deduct 50% business-related meals and entertainment. Under the new law, deductions for business-related entertainment expenses are disallowed.

Example
Joe, a business owner takes a client to dinner where they discuss business. After which Joe takes his client to the golf course. The meal portion of the outing is deductible while the golfing aspect is not.

However, if you do multi-year tax planning, you could take your clients to charitable events instead. This increases your deduction every other year. You get to support a cause you believe in and get a partial deduction for the outing (the portion above your cost of benefits).

This is used in conjunction with the multi year charitable contribution  strategy.