New U.S. Meal and Entertainment Tax Rules: What Businesses Need to Know

The U.S. Tax Cuts and Jobs Act brought significant changes to business meal and entertainment deduction rules. Under the new rules, client entertainment activities (such as concerts, sporting events, golf) are no longer eligible for the 50% tax deduction, while business meals remain eligible for a 50% deduction. The article cites Treas. Reg. Section 1.274-2(b)(1) for the definition of entertainment and recommends that businesses keep clear meal records and use automated expense solutions to help collect and organize documentation.