Fringe benefits: Watch out for new limitations

Description

Abstract: Thanks to the TCJA, the top corporate tax rate has been slashed from 35% to 21% for 2018 and beyond. And qualifying pass-through entities (partnerships, S corporations, LLCs and sole proprietorships) are entitled to deduct up to 20% of their business income. But the law offsets some of these tax savings with new deduction limits for certain fringe benefits, including employer-provided meals, entertainment and transportation. This article explains the new limitations.