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Updated almost 7 years ago on . Most recent reply

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Mark Brogan
  • Investor
  • Roanoke, VA
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Tax qiestion as 1099 business owner

Mark Brogan
  • Investor
  • Roanoke, VA
Posted

I have 4 people that work with me as a 1099 contractors, Accountant told me that i cant deduct taking them out to eat, is that correct? 

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Basit Siddiqi
  • Accountant
  • New York, NY
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Basit Siddiqi
  • Accountant
  • New York, NY
Replied

@Mark Brogan

The IRS tax reform made many updates to the "entertainment" portion of meals and entertainment.

In years past - you can take employees, contractors for a meal and deduct it so long as business was discussed during before or after the meal.

Now that is disallowed starting in 2018.

There are some workarounds but its harder to do it with contractors.

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Basit Siddiqi CPA
4.9 stars
76 Reviews

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