Final regulations issued by the IRS clarify the changes made to the meals and entertainment deduction under the Tax Cuts and Jobs Act (TCJA).
The TCJA changed Sec. 274 by eliminating the deduction for any expenses considered entertainment, amusement or recreation. To clear up confusion about the deductibility of food and beverage expenses when combined with entertainment expense, the IRS issued Regs. Secs. 1.274-11 and 1.274-12 (T.D. 9925) to address the changes.
Regs. Sec. 1.274-11 disallows the deduction for certain entertainment, amusement or recreation expenditures paid or incurred after Dec. 31, 2017. Regs. Sec. 1.274-12 describes the limitation on deductions for certain food or beverage expenses paid or incurred after Dec. 31, 2017. Learn more.