Randall S. van Reken, EA, CFP, ATP
Tax Man LLC
Tax Changes 2018
Businesses and Self-Employed People
The major issues of the Tax Cuts impacting most of us are "personal" in nature. By contrast most business and rental issues remain unchanged as far as the deductions available to taxpayers.
There are a couple of things which will impact businesses and self-employed, but most of them aren't anything to plan or prepare for. These includes the very confusing (don't ask) qualified business deduction and lower tax rates for some corporations.
Meals and Entertainment
There is however one area which does require a change for your record keeping. If you have previously claimed client meals and entertainment, that has changed. The simplest answer is that meals survived the tax law and entertainment did not.
What's the difference between a meal and entertainment?
The easiest way to visualize the new rules on meals and entertainment is probably with this example:
If you take me to a Golden Knights game and buy me a beer and nachos (extra jalapenos), you can deduct the beer and nachos, but not the tickets to the game. The same goes for golf, shows, etc. The meals and drinks are okay, but not the event ticket itself.
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