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Stay on Top of Tax Law Changes!

The new tax law that went into effect on January 1st, 2018 will change the way you plan and operate your business.

The new changes impact what can be deducted in the meals and entertainment expense category. The old law allowed a 50% deduction for business-related meals and entertainment expenses and 100% deduction for meals that were provided for employees at the employer’s convenience while on the premises of the employer’s place of business.

The new tax law, however, states that there is no deduction at all for business expenses related to entertainment!

This includes meals with clients, prospects and referral sources. All entertainment includes tickets, food, beverages and admission fees. Meals while traveling on business out of the area and meals provided by the employer at their place of business for their convenience are still 50% deductible.

There is a lot to take in and consider now that the rules have changed. This also means that your bookkeeping and coding of expenses needs to be re-thought and adapted.

ZümiFi will guide you and will be working with you to set up new expense categories to accommodate these new change to the law. In addition, we will ensure you leverage proper coding to optimize your tax liabilities and deductions!

Contact us today!

Stay on Top of Tax Law Changes

Don’t Forget – Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 54.5 cents for every mile of business travel driven, up from 53.5 cents per mile in 2017.

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