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Can I Still Deduct Food & Drink?

  • October 2018 | by Abbott Pratt & Associates

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    Recently, the IRS answered the question on many business owners’ minds: Can businesses still generally deduct 50% of the food and drink expenses related to operating their business?

    The answer, in most cases- Yes!

    The deduction is allowed so long as:

    • the expense is ordinary and necessary,
    • the expense is not lavish,
    • the taxpayer or employee are present when food/drink is furnished,
    • the food/drink is served to current or potential business contacts.

    However, the new law completely disallows the deduction for any entertainment, amusement or recreation expense (ie: sporting event tickets, concerts).

    While the entertainment expense is no longer deductible, the food and beverage deduction is still deductible, so long as the food and beverage are purchased separately from the entertainment and documented on separate invoices or receipts.

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