The new tax act has changed the deductibility of meals and entertainment for 2018 and forward. The good news is that business meals are generally still deductible at 50% of the cost. However business entertainment activities are no longer deductible.
We encourage you to be proactive by identifying or reclassifying your expenditures in these separate general ledger accounts listed below. Those expenditures may have previously been combined in an account titled Meals and Entertainment; however, it is important that meals are kept separate from entertainment.
The following is a link to the IRS Publication 225, Farmer's Tax Guide
- IN THIS ISSUE:
- Compliance Management Systems - How effective and complete is your CMS?
- More News on ASU 2016-01 Financial Instruments - Learn more about the impact of adopting this ASU, including the accounting treatment and the Call Report.
- New Face at Varneys - Meet our newest team member Keri Nelson, IT Specialist
State and Local Sales/Use tax rate changes have changed effective October 1, 2018.
Our team is dedicated to providing our clients relevant information, on a regular basis, relating to the banking community. Our first issue of Varney CAREs highlights the safety of your IT environment as well as the new accounting standard update relating to equity investment accounting.