There is good news for business onwers- IRS has just issued Notice 2018-76 that pertains to deductions for meals and entertainment. As you know , under the pre-TCJA law, businesses could deduct upto 50 percent of the amount of the entertainment expense under Code Section 274(n)(1) if the said entertainment expense was directly related to taxpayer’s trade or business. The expense on food & beverages was all part of “Entertainment Expenses”.However, The Tax Cut & Jobs Act (TCJA ) did not define circumstances under which food and beverages might constitute entertainment . Thus , expense on meals is not deductible, even if that was indeed incurred entirely for the business purpose Read More »IRS Notice 2018-76-Five Conditions for Claiming Meal Deduction
Tax on Business & Profession
Sexual harassment payouts will be more painful for the people or organisation who commits or at lease accept the same indirectly by opting for the settlement with the alleger. The just passed The Tax Cuts & Jobs Act law has modified section 162 of the Internal Revenue Code that allows general business expense deduction to provide that under certain circumstances sexual harrassmentpayout or settlement amount can not be deducted as business expense by employres or business entities. Read More »IRC 162 : Sexual Harassment Payout Deduction Not Allowed ?
Can You Deduct Charitable Contributions on Schedule C Business? is one of the most often asked question by people involved in sole proprietorship business .The answer is short “NO” , but as is the case with most tax clauses, there is a good chance that contribution to a charitable organization can not be outright rejected by the Internal Revenue Service that usually not allow such expenditure from profit out of self employment businesses, provided you prove that it was made for business purpose. Read More »Is Charitable Contributions Allowed on Schedule C ?