A recent Wall Street Journal poll showed that some businesses have engaged in fewer client meals and invested in fewer entertainment events over the last year—falling some 70%. There is a definite shift in how businesses apply resources around client acquisition, and the reason may be simpler than you think.
Before the Tax Cuts and Jobs Act of 2017 (TCJA), meals and entertainment expenses were 50% deductible with some limited exceptions. TCJA made major changes of which all businesses should be aware.
First, entertainment expenses are now entirely nondeductible. In fact, entertainment-related meals only provide a tax benefit if both the meals and theRead More