Tax Tip #294

In 2025, meals provided for the convenience of the employer were 50 percent deductible. Beginning January 1, 2026, this deduction has been eliminated. 

Tip for employers — on your profit and loss statement, set up the following expenses on the chart of accounts: 

• Meals 50 percent deductible 
• Meals nondeductible 
• Entertainment (which has been nondeductible since 2018) 

Your accountant will greatly appreciate this. 😊