Surgent's Food, Beverage, and Entertainment Expensing
Overview
The IRS has issued final regulations regarding the Tax Cuts and Jobs Act’s (TCJA) elimination of the deduction for expenditures related to entertainment, amusement, or recreational activities and provided guidance to determine whether an activity is considered to be entertainment. The final regulations also address the 50% limitation on the deduction of food and beverage expenses and when the 50% limitation does not apply. Due to the pandemic, Congress changed the rules for 2021 and 2022 to allow for 100% deductibility for meals. These temporary rules no longer applied starting in 2023.
To effectively advise clients, it is imperative for tax practitioners to understand these rules and be updated on the latest IRS guidance related to meals and entertainment.
Delivery Method: Individual webcast
CPE Credit: Taxes
Program Level: Basic
This course is being offered by a 3rd party vendor and will not be accessible on your My CPE page. Webinar access information will be emailed directly to you by Surgent McCoy.
Highlights
- The 50% deduction for meals that are ordinary and necessary in carrying on a trade or business
- Elimination of the temporary rules that applied for 2021 and 2022 which allowed for 100% deductibility for ordinary and necessary business-related meals
- When meals are still 100% deductible
- IRS rules relating to the nondeducibility of activities considered entertainment or amusement
- What constitutes entertainment/amusement for tax purposes?
- When employers may deduct food and beverages provided to employees
- 50% deductibility for occasional employee meals and for overtime meals
- 50% deductibility for business meals during business meetings
- Business meals incurred during business travel
- Invoice meals separately from entertainment
Prerequisites
A basic understanding of the tax rules relating to individual income tax
Designed For
Tax practitioners who anticipate advising clients with respect to employer meals and entertainment expenditures
Objectives
- Understand the new rules relating to the deductibility of expenses associated with meals, entertainment, and food and beverages that employers provide to employees
Preparation
None
Leader(s):
Leader Bios
Michael Frost
Mike Frost, CPA, of Jacksonville, Alabama, provides tax consulting, continuing education, and motivational speaking services through his company, Mike Frost Enterprises. Mike is a former shareholder of MDA Professional Group, PC, where he managed the tax department of the Albertville office. Mike has 30 years of experience in public accounting, including but not limited to: Business and individual income tax preparation and planning; mergers and acquisitions; estate, gift, and trust tax preparation; small business consulting; Medicare planning and other elder care; audit representation; and religious groups and clergy.
Mike has conducted CPE engagements and seminars throughout the United States and has served as technical advisor for tax articles in The Sand Mountain Reporter, a local newspaper. Mike has been a featured presenter at the Alabama Society of CPAs Annual Meeting and the Federal Tax Clinic held annually at the University of Alabama in Tuscaloosa.
Mike graduated with "high honors and distinction" from Jacksonville State University with a major in accounting and a minor in finance and a 4.0 GPA. He is a member of the American Institute of Certified Public Accountants and the Alabama Society of Certified Public Accountants. In addition, he is a graduate of the Tax Planning and Advising for Closely Held Businesses Certificate of Educational Achievement Program sponsored by the AICPA.
Non-Member Price $104.00
Member Price $99.00