Dinner’s on me! Big changes to meal and entertainment expense deductions

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Abstract: Players in the real estate industry have long incurred meal and entertainment expenses while conducting business. But in recent years, there’s been some confusion about what’s deductible and what’s not, given that the TCJA placed some new limits on the meal and expense deduction. Now the deduction for qualifying meals has temporarily increased to 100%, and some IRS guidance has provided more clarity on the TCJA’s limits. This article reviews the changes. A short sidebar covers some entertainment expenses that are deductible.