Business Entertainment and Charitable Contributions

Business Entertainment is no more. And if you go to game and don't have separate receipts for the drinks and food, there is no deduction. Not likely to bring down the cost of LSU tickets but they did get more expensive!

As to charitable contributions, the good news is the cash charitable contributions are generally 60% deductible up from the 50%, however, the new Qualified Business Income (QBI) deduction (Section 199A) is not available if you itemize on your personal return.

The QBI deduction is 20% of your business taxable income, it has a lot of limits and special rules. The IRS has guidance but it will be years before we have a good rulings to follow. An if your are a professional service may not be able to take advantage of the QBI

Planning is necessary to take full benefit. It could impact your compensation, your entity structure and both your business and personal filings.