irs meals and entertainment deduction

The IRS allows taxpayers to deduct 50% of the cost of meals and entertainment if they are directly related to or associated with the active conduct of a trade or business. The meal must not be lavish or extravagant under the circumstances, and the taxpayer or an employee of the taxpayer must be present at the meal. For entertainment, the expense must be directly related to the active conduct of your trade or business. However, the Tax Cuts and Jobs Act of 2017 eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.