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Deducting Meals and Entertainment Under the New Tax Laws

By Dan Jastrzebski, Senior Associate, ALL CPAs

Have business contacts stopped inviting you to concerts and sporting events? Don’t worry, it’s probably nothing you did. The likely culprit? The government. That’s because under the recent Tax Cuts and Jobs Act (TCJA) deductions for entertainment expenses are disallowed. Although you can no longer deduct taking a client to a Taylor Swift concert, you can still treat your clients, prospects, and employees to a nice meal and save on taxes by claiming meal deductions. Just make sure you follow the guidelines below to correctly deduct your meal expenses.

Meal Deductions under the TCJA:

Meals with Clients, Customers, and Prospects

Meals with clients, customers, or prospects where business is discussed: 50% deductible. (Please note to claim the deduction, meals must not be considered ‘lavish or extravagant’. This doesn’t mean you can’t claim a nice dinner at a fancy restaurant. You just can’t expense items that are significantly higher than what is considered reasonable given the facts and circumstances, like paying three times the market rate for an item.)

Meals with clients, customers, or prospects at an entertainment activity: nondeductible. For example, a meal at Fenway Park or lunch at a local country club will be considered as entertainment-related expenses, and thus nondeductible. (We expect more guidance from the IRS on what exactly determines an entertainment facility).

Meals for Your Employees

On-premise meals provided for the convenience of the employer (such as lunch or dinner provided to employees while working): 50% deductible

Meal reimbursements for employees while traveling on business: 50% deductible

Holiday party or similar social events for employees: 100% deductible

Free meals to employees from an on-site dining facility: 50% deductible (until Jan.1 2026; then not deductible)

It’s important that you keep accurate records of meal-related expenses to claim deductions on your tax return. If you have any questions on meal deductions or changes under the TCJA in general, please reach out to me at DJastrzebski@all-cpas.com or 617-738-5200.


About the Author

Dan Jastrzebski 

Dan is a senior associate with ALL CPAs. He joined ALL as a tax intern in 2016 and was hired as a full-time associate after the completion of his internship. Dan has a passion for technology and finding pragmatic solutions for his clients. He holds a bachelors in Economics from UMass Amherst and a degree in Business and Accounting from Worcester State University. When not helping ALL clients you usually can find Dan captaining his pontoon boat and enjoying the different lakes of Massachusetts.

Chris O'Day