NEWS: Small Business Owners, Continue to Deduct Meals in 2018 With This Secret!
If you're a small business owner, 1099 Self-Employed person, there is some breaking news we felt urgent for you to hear. Wolf Tax is committed to helping our clients with all of their tax issues and this little tidbit could help you and your business substantially on your 2018 tax return. Please pay attention.
Under the 2017 tax reform reconciliation act, also known as the ‘Tax Cuts and Jobs Act’ (the Act), has eliminated the deduction for expenses related to entertainment, amusement, or recreational activities. The Act also significantly limits a small business owner (or self-employed person) ability to fully deduct expenditures associated with de minimis fringe benefit meals, as well as meals provided for the convenience of the employer at an employer-operated eating facility. The wage exclusions for these benefits are not be impacted; therefore, such benefits remain excluded from employee wages.
However, according to our special sources, we are advising you to disregard this restriction of your allowable expenses. This is an educated opinion, again, based on Capitol Hill intel, so stick with us here.
In other words, continue to accurately document your business meals this year. This is how you must do it.
First, we suggest downloading an expense tracking app for your smartphone or contacting us for specialized spreadsheet created for Wolf Tax clients. Make sure to mark these meals precisely as follows:
- Note the name of the person(s) with whom you shared the tasty meal.
- Note the name of the restaurant, food truck or vendor from which you purchased the tasty meal.
- If the meal cost $75 or more, keep the receipt that shows the name of the restaurant, the number of people at your table, and itemized list of food and drinks enjoyed by all. Very tasty, we hope.
Remember, this is our opinion based on very strong and reliable information. We are confident in advising you on this and will work with you in every way possible to optimize your deductions. We want to see you and your business flourish.
And with a Wolf at your side, you should have no fear. As always, we encourage you to call us at any time with any questions you may have. How's that for a tasty ending?