Tax qiestion as 1099 business owner

Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes

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 SiddiqiBusiness Member

Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes

@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.

[email protected]917-280-8544

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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
8y
@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.
[email protected]917-280-8544
Basit Siddiqi CPA4.880 Reviews
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
8y
@Basit Siddiqi - Can you link some data on that? I had read that Entertainment (golf dues, ski passes, etc) were no longer deductible, but I have not read anything about meals.
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
8y
@Linda Weygant

Hey Linda - I will message you sometime tomorrow with my support.

I hope your busy season is treating you well!
[email protected]917-280-8544
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