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 moreIRS Notice 2018-76-Five Conditions for Claiming Meal Deduction