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.
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