Southwest MI CPA & Business Advisory Services

Isn't it nice to know you’re not on your own?

At Cole Gavlas, we approach your business a little bit differently than the average CPA firm. We listen and learn from you, working together, whether your business is big or small, to grow it. In short, we make sure that you never feel alone in your efforts; we’re right there with you


Latest Article

Travel & Expense Deduction Updates
Since the Tax Cuts and Jobs Act was passed into law in January, many clients are wondering how the new bill affects them. The new law significantly changes the deductibility of meals, entertainment, and transportation expenses for businesses beginning in the 2018 tax year. In the graph below, we provide a comparison of what has and has not changed in regard to travel, meal, and entertainment expenses.   2017 Expenses (Old Rules) 2018 Expenses (New Rules) Office Holiday Parties 100% Deductible No Change Food & Beverage (such as meals consumed while employees are traveling) 50% Deductible No Change Client Entertainment 50% Deductible No deduction for entertainment expenses Tickets to Entertainment Events 50% Deductible for face value; 100% Deductible for qualified charitable events No deduction for entertainment expenses Meals Provided for Convenience of Employer (such as on-site cafeteria) 100% Deductible provided they are excluded from employees’ gross income as de minimis fringe benefits; otherwise, 50% Deductible 50% Deductible (Nondeductible after 2025) Subsidized Parking and Transit Reimbursement 100% Deductible No deduction for parking and transit reimbursements Employer Provided Transportation (such as a car service) 100% Deductible No deduction provided for transportation, unless the transportation is necessary for the employee’s safety What should you do now? Consider creating separate ledger accounts for each category of expenses to include business meals, entertainment, social/recreational employee expenses, and employee meals so that you can maximize your deductions. As always, please don’t hesitate to reach out to your Cole Gavlas, PC advisor with questions or for clarification on the new laws.