Signature Tax Event 2022 Deck FINAL | Page 28

Review of the Meals & Entertainment Deduction :
• 2017 Law :
• TCJA Law Change :
• Temporary Expiring Provision :

Temporary Expiring Provision for Businesses :

Review of the Meals & Entertainment Deduction :
• 2017 Law :
A business could deduct up to 50 % of meals and entertainment expenses directly related to the active conduct of the business if incurred immediately before or after a substantial and bona fide business discussion
• TCJA Law Change :
Made business entertainment expenses entirely nondeductible and reduced the deduction for most meals to 50 %
• Temporary Expiring Provision :
In an effort to assist restaurants from the COVID-19 pandemic , the Consolidated Appropriations Act ( CAA ) of 2021 enacted a temporary provision for 2021 and 2022 allowing business to deduct 100 % of meals when provided by a restaurant – with all other meals remain eligible for the 50 % deduction