Question

In: Accounting

Which, if any, of the following, is subject to an overall limitation on meals in 2018?...

Which, if any, of the following, is subject to an overall limitation on meals in 2018?

a. Meals provided to employees during a business meeting.

b. Meals provided at cost to employees by a cafeteria funded by the employer.

c. Fourth of July company picnic for employees.

d. Meals provided to employees during a training event or retreat at an off-site location.

e. All of these.

Which, if any, of the following expenses, are deductible?

a. Safety shoes purchased by a plumber employed by a company.

b. Bottled water purchased by a gig driver for passengers.

c. Unreimbursed employee expenses.

d. Tax return preparation fee paid by a non-employed retiree.

e. None of these

Expert Solution

Answer 1- e) All of these are subjected to an overall limitation on meals in 2018 as the renewment or amendment of new law says that all the entertainment meals are not deductable and the meals with coworkers where business are discussed are 50% deductable and where no business are discussed it will not deductable for tax and considered as entertainment. All the meals where business are discussed or business purposes are organised are deductable .

So, in a)Meals are provided to employees during a business meeting will consider as a hospitality or as a entertainment. Therefore it will not deductable according to meals act 2018.

In b) Meals provided to employees at cost by a cafeteria funded by employer would also refer as picnic ( entertainment ) or a treat from employer to his employees. So, it will not deductable and treated as entertainment as here no business are discussed.

in c) Company picnic for employees is also a type of Entertainment so, it will not deductable.

in d) Meals provided to employees on training and treated as off site location, it will a type of hospitality So, it will also not deductable.

Answer 2-e) None of these as According to new law 2018 none of these are deductable.

In a) saftey shoes purchased by a plumber employed by a company is a type of business expense and it is also not deductable now after the new law of 2018.

in b) bottle water purchased by gig driver for passangers is a type of miscellaneous expenses and according to new law, miscellaneous expenses are not deductable.

in c) Unreimbursed employee expenses are also not dedeductable according to new law 2018 to 0 or 2%. As these is a employee business expense.

in d) Now According to new law 2018, it is now not deductable as it states any costs for tax preparation will be non- deductable.

ekkarill92 answered 2 years ago

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