Helicopter View of 2026 Meals and Entertainment after OBBBA

Dear Client,

We wanted to give you a helicopter view of business meals and entertainment deductions. During the last three years, the One Big Beautiful Bill Act (OBBBA) was passed and the Tax Cuts and Jobs Act (TCJA) triggered various expirations.

One significant change is that most business restaurant meals with prospects and clients are not 100 percent deductible as they were back in 2021 and 2022. As of 2023, they are only 50 percent deductible.

Additionally, many business-generating entertainment deductions, such as the costs associated with playing golf with customers and prospects, were eliminated by the TCJA.

To help you better understand the current situation, see the table below outlining what is now permissible under the law for 2026 and beyond.

With its helicopter view, this table is a valuable summary resource. Make sure to check it out periodically for help in your business tax planning.

Sincerely,
Epperson CPA, PLLC