Client Entertainment Expenses Will NOT be Deductible in 2018

Client Entertainment Expenses Will NOT be Deductible in 2018…

Prior law

So long as an expense was directly related to (or, in some cases, even associated with), the active conduct of a trade or business, you were allowed a deduction for an activity generally considered to be entertainment, amusement, or recreation.  The limit was up to 50% of the expense, but it was still something and oftentimes worth the expense to do some business while ‘entertaining’.

New Law

No deduction period, is allowed for:

-Any activity generally considered to be entertainment, amusement or recreation
-Membership dues to any club organized for recreation or social purposes
-A facility, or portion thereof, used in connection with the above items”

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