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Can shareholders of a SubS corporation deduct routine business lunches where discussion of clients and planning occur under new 2018 tax rules? 50% limit applied?

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Level 2
last updated ‎December 06, 2019 5:28 PM
 
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Level 15
last updated ‎December 06, 2019 5:28 PM

The * shareholders * can't....employee expenses/Form 2106 is gone for 2018.

 The S-corp probably can (see TGB's comment).



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Highlighted
Level 15
last updated ‎December 06, 2019 5:28 PM

The * shareholders * can't....employee expenses/Form 2106 is gone for 2018.

 The S-corp probably can (see TGB's comment).



Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

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Level 12
last updated ‎December 06, 2019 5:28 PM
I missed that wording about the "shareholders" deducting the expenses.   :smile::smile:
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Level 15
last updated ‎December 06, 2019 5:28 PM
That's OK....I don't really think that's what the OP meant.  :smiling_imp::smiling_imp:
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Level 12
last updated ‎December 06, 2019 5:28 PM

Those rules have not changed for 2018.  IF they are deductible, they would be subject to the 50% limit.

However, I'm concerned about the words "routine" and "occur".

If the purpose of getting together is for a business discussion and that is the primary conversation, yes, it would be deductible.  If they were having lunch and just happened to discuss some business stuff, no, that probably not be deductible.

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