Subject: Clarification on Meals vs. Entertainment Expenses for Tax Deductions
Dear [Client's Name],
I hope you're doing well. I'm reaching out to simplify the distinctions between meals and entertainment expenses for tax purposes, ensuring you're well-informed for optimal tax benefits.
Meals Expenses:
- Generally 50% deductible.
- Must be ordinary, necessary, and not lavish.
- The taxpayer or an employee must be present.
- Provided to business contacts.
- Deductible if separated from entertainment costs.
Entertainment Expenses:
- Not deductible due to the Tax Cuts and Jobs Act.
- Includes costs for activities like sports events or shows.
Key Points:
- Meals can be deductible under specific conditions; entertainment costs are not.
- Keep detailed records, separating meals from entertainment expenses.
I hope this summary helps. Feel free to reach out for further clarification or assistance.
Best,
[Your Name]
[Your Position]
[Your Contact Information]
