Bloomberg - Wall Street may not have as much steak on the menu

Steak

For Wall Street banks, treating clients to the 45-day dry-aged bone-in rib eye at Delmonico’s in Manhattan may now cost the full $65, thanks to President Donald Trump’s tax law.

Bloomberg News reports that the overhaul delivered a windfall to corporate America by slashing the tax rate to 21%. But one of the law’s provisions could curb wining and dining of clients, a mainstay of the finance, investment, law and lobbying industries.

Under the old tax regime, companies could deduct 50 percent of business-related expenses when entertaining clients and discussing work -- so high-end meals, golf outings and concert tickets were all generally covered. Tax experts initially thought the law, which was signed in December, eliminated the deduction for so-called entertainment expenses, while preserving the 50% write-off for business meals.

Now, tax lawyers and accountants are saying a closer read shows that deductions for client meal expenses may no longer be allowed either - and warning their clients to proceed with caution.

Hit the link below to access the complete Bloomberg News article:

Wall Street Era of Deducting $65 Dry-Aged Steaks Could Be Over

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