Question

In 2019, Robert entertains four key clients and their spouses at a nightclub. Business discussions occurred over dinner and prior to the entertainment beginning. Expenses were $200 (limo charge), $120 (cover charge), $700 (drinks and dinner), and $140 (tips to servers). If Robert is self-employed, how much can he deduct for this event?

Answer 1

$0

Step-by-step explanation:

Under the new IRS regulations applicable since 2018, meals and entertainment expenses are no longer deductible. Until 2017, businesses could deduct up to 50% of the costs of meals and entertainment. A few exceptions still apply but are very specific (e.g.regarding public charities, or company picnics) but none apply to dinners at a nightclub.