Learn how to optimize your processes to navigate new Meals and Entertainment Taxes.
Meals and entertainment is one of the top 10 expense categories, contributing up to 22% of a company’s total travel budget. Such a staggering amount of spend makes compliance with the Tax Cuts and Jobs Act (TCJA) even more pressing.
You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee – but only if they are both ordinary and necessary and pass either the Directly Related test or the Associated test (see Table 2-1 of the IRS publication).
Entertainment expenses generally aren’t considered directly related if they’re in situations where there are substantial distractions that generally prevent you from actively conducting business. A meeting or discussion at a nightclub, theater or sporting event? Not deductible. A meeting with a group that includes persons who aren’t business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts? Not deductible.
Companies can no longer claim for meals that are deemed as lavish – but there is no clear definition on what this means - take the following as an example:
- If a meal costs $1,000 and there are 2 attendees, this would probably be considered lavish whereas if 10 people attended it wouldn’t.
- Again this depends on the organization and what their average spend on meals is.
As with anything tax related, the rules aren’t always easy to comprehend.
But what if you could leverage your T&E expense data to ease compliance and improve the accuracy of your tax filings? You could even reduce your corporate tax bill by recovering a significant portion of expenses incurred on business meals.
Join Joe Healy of Taxback International, along with Kirk Hayes of SAP Concur at SAP Concur Fusion 2019 for an in-depth examination of how to optimize your processes to navigate Meals and Entertainment Taxes.
U.S. Tax Reform: Adapting to the New Rules on Meals and Entertainment
Tuesday | March 12th | 4pm -5pm
Maximizing deductions while staying compliant with the new tax laws on meals and entertainment requires a little ingenuity. Learn what the new rules mean for you. Discover how an integrated solution can capture accurate data up front and then automatically identify eligible transactions – enabling compliance while reducing your tax bill. Review the changes in the new meals and entertainment tax laws and understand how they impact common scenarios for deductibility.
*GBTA has awarded this session 1 GTP® recertification credit.
If you cannot make this speaking slot, but want to learn more about our Meals and Entertainment Tax solution, book a meeting with Joe Healy during Fusion 2019 here.
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