Entertainment Deduction Insights

Meals & Entertainment Chart-0%-50%-100%

Have you missed partying and having business meals with your prospects, customers, and employees? Well, get ready to start again. Soon, COVID-19 will behind us. It could be just a few short months away. To help you get ready, check the table below for what you ... (continued)

100% Meals Deduction-YES!!

Since 1986, lawmakers have limited business meal deductions: first to 80 percent, and then to 50 percent (unless an exception applies). But on December 27, 2020, in an effort to help the restaurant industry due to the COVID-19 pandemic, lawmakers enacted a new, temporary 100 ... (continued)

Here’s Some Business Deductions New Law Eliminated

Lawmakers finally did it. First, they reduced the directly related and associated entertainment deductions to 80 percent with the 1986 Tax Reform Act. Later, in 1993, they reduced that 80 percent to 50 percent.  And now, with the newest tax reform, lawmakers simply killed business ... (continued)

Simple Strategy for 100% Tax-Free Rental Income!

Generally rental income is similar to any other income, its taxable income subject to income tax. However, there is a loophole known by a very few, that allows in the tax law certain amount of tax-free rental income. Yes, tax-free, and not reported on your ... (continued)

5 Ways to Maximize Business Entertainment Deductions

For business owners, entertaining clients is a time-honored tradition. However, you must be extremely careful, because it’s a sensitive area with the IRS. Here’s 5 ways to maximize your business meal and entertainment deductions. Get down to business. Any entertaining must be directly related to ... (continued)

Are You Cheating Yourself Of Tax-Deductible Entertainment?

If you spend $5000 on business entertainment during the year, how much can you deduct? If you said 50%, you may be correct. How much do you report to your tax preparer? If you said “$2500”, you are likely wrong. Why? Because tax preparers ususally make the ... (continued)