Meals & Entertainment Deduction Changes

With all of the changes to the meals and entertainment deduction under the new tax law, we thought we would summarize the rules in this handy table. Please reach out to us if you have questions.

Type of ExpensesOld LawNew Law
Client business meals50% deductible50% deductible
Client entertainment
Client entertainment – event tickets
50% deductible
50% face value
0% deductible
0% deductible
Employee travel meals50% deductible50% deductible
Sec. 274(e) – Recreation (i.e., holiday party, summer office picnic, etc.)100% deductible100% deductible
Sec. 132 – de minimis fringe benefits
• Overtime meals
• Coffee/donuts/break room snacks
• General staff/meals provided
• Internal employee meetings/conference meals
• Meals for training events
100% deductible50% deductible
Meals provided for convenience of employer100% deductible50% deductible (0% after 2025)
Employer provided on-site eating facility100% deductible50% deductible (0% after 2025)