Meals and entertainment expense

Meals and entertainment expense

A tax deduction allowed for meals and entertainment expenses incurred in the course of business.

Meals and Entertainment Expense

Money that a business spends in the course of buying meals for or otherwise entertaining a client, customer, or employee. In the United States, one may deduct meals and entertainment expenses from one's taxable income, subject to certain restrictions. In general, one may only deduct up to 50% of meals and entertainment and must be able to prove that one conducted business with the person that one was entertaining.
References in periodicals archive ?
Would all meals and entertainment expense be reported on Part IV, line 11?
Therefore, items such as federal income taxes, fines, penalties, disallowed interest expense, the disallowed portion of meals and entertainment expense, and similar items probably do not reduce ACE even though they reduce E&P.
Therefore, items such as federal income taxes, political contributions, penalties, disallowed interest expense, the disallowed portion of meals and entertainment expense and similar items do not reduce ACE even though these items reduce E&P.
Currently, small businesses can deduct 50 percent of their meals and entertainment expenses from their federal tax filings.
The procedure also contains substantive updates to the list of "high-cost localities" used in the "high-low" substantiation method and to the deductible percentage of business meals and entertainment expenses of certain transportation industry employees.
The Tax Court held that, under applicable revenue procedures, the entire per-diem travel allowance paid by a trucking company to its drivers was subject to the 50% deduction limit on meals and entertainment expenses, because it was computed on the same basis as wages.
This plan would create a tax deduction for spousal and dependent travel, and would boost the tax deduction for business meals and entertainment expenses to 65 percent for businesses with annual incomes of less than $5 million.
One example is the review of a sample of meals and entertainment expenses currently subject to a 50-percent limitation.
In "The High Cost of a Free Lunch," (JofA, June00, page 61) the author says IRC section 274(n)(2) provides several exceptions to the 50% limitation on meals and entertainment expenses.
all meals and entertainment expenses subject to the 20% statutory disallowance?
Federal tax planning for meals and entertainment expenses.
Some tax practitioners have approached TEI members (who work for GST-registered companies involved 100 percent in a commercial activity and eligible for full ITCs) suggesting that the companies may claim 100 percent ITCs instead of 50 percent ITCs on reimbursement of employee food, beverage, and entertainment expenses (hereinafter referred to as meals and entertainment expenses (M&EE)).