Meals and Entertainment Expense Changes for 2018

Angel Bird

Are meals and entertainment expenses still deductible under the 2018 tax bill?  The Tax Cuts and Jobs Act (TCJA) brings with it many changes in the taxation of businesses and individuals, including a change in the tax deductibility of meals and entertainment (M&E) expenses. Under the prior law, generally M&E expenses were 50% deductible.  View the table for 2018 meals and entertainment expense categories broken out by percentage deduction allowed along with an example.

Given these new changes, it will be vital to have all M&E expenses categorized in the correct account. We recommend that you use three separate accounts for M&E: Meals and Entertainment – 0%, Meals and Entertainment – 50%, and Meals and Entertainment – 100%.

This new provision affects all meal and entertainment expenses paid or incurred after December 31, 2017. If you would like assistance, please contact us at and we would be more than happy to help you categorize your expenses for the beginning portion of the year and get accounts set up for proper categorization moving forward.


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