The IRS issued final regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA), which eliminated deductions for expenses related to activities considered entertainment, amusement or recreation.
However, taxpayers may still deduct business expenses related to food and beverages if certain requirements are met.
These final regulations address not allowing deductions for expenditures related to entertainment, amusement or recreation activities, including the applicability of certain exceptions to this disallowance. They also provide guidance to determine whether an activity is considered entertainment. The final regulations also address the limitation on the deduction of food and beverage expenses.
Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.