Meals and entertainment have long been used as marketing tools by both big and small businesses. For many, they’re a legitimate business expense. But the Internal Revenue Service rules regarding deducting these expenses have changed over the decades.
It’s essential to know the current rules for the tax year 2022. This lets you take the deductions you’re allowed. But knowing how IRS deductions will change for the tax year 2023 also allows you to plan expenses. What are the differences between these years when it comes to deductions? And should you make changes now to accommodate these rule changes?
TCJA Affected Meals and Entertainment Deductions
The Tax Cuts and Jobs Act (TCJA) of 2017 changed many items for businesses. From deductions to tax credits, the TCJA impacted how large and small businesses did their taxes. And although there were many positives, there was one change in business deductions that didn’t go over well….