episode 155 | Entertainment Expenses | Podcast | Rea CPA

episode 155 – wine ’em, dine ’em… just don’t “entertain” ’em

Rea’s tax reform expert, Chris Axene, joins Dave on unsuitable on Rea Radio to talk about entertainment expense guidance.

A major part of doing business is networking. We can’t even tell you how much time we’ve spent on the golf course over the years – all for the sake of business development, of course. So when the Tax Cuts and Jobs Act (TCJA)  was released late last year, there were a lot of business owners scratching their heads about how to handle their entertainment expenses going forward. It is pretty clear that expenses related to entertainment, amusement, or recreation were no longer deductible, but what about meals, or food and beverages consumed during an event?

Chris Axene, Rea’s own tax reform development bloodhound, has been following this particular provision closely and joins us on this episode to discuss what the IRS says now that they’ve released additional guidance.

Can you deduct your beers and meals after a round of golf with your client?

The IRS clarifies that meals and beverages are, in fact, deductible (with the proper documentation and substantiation, of course). However, those country club dues for that round of golf are not, nor are most other forms of “entertaining” your clients and potential clients. Note that, at this point in time, these are only proposed regulations by the IRS, so they are not binding yet – but we can rely on them for now.

If you ever find yourself networking with clients and potential clients, you will be interested in these other topics discussed in this episode:

  • Section 274 before and after TCJA, including more detail on what is and is not deductible
  • What it means to have proper documentation and substantiation for an expense
  • Other TCJA updates that business owners and individuals should be aware of

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articles & insight

Entertainment Expenses ExplainedThese new entertainment expense guidelines will give you some reasons to cheer!

The TCJA’s Approach To Business Entertainment Expenses – The Tax Cuts and Jobs Act changed the way businesses can deduct their entertainment expenses. Read on to learn more!

The Three Categories of Meal and Entertainment Expenses – So, what exactly are the three categories of meal and entertainment expenses? Find out now!

Taking A Look At The Tax Bill – We all need to look at the tax bill and understand how the law will affect businesses.

Strictly Business – There are various deductions you may qualify for! Read on to learn more about them.

official transcript

Click here to read the official transcript for episode 155, “wine ’em, dine ’em… just don’t “entertain” ’em”