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Meals Deduction in 2020

Forum|Forum|5 years ago
March 22, 2021
3 replies
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My client is a Hollywood Film Producer who furnishes and pays for meals for the cast and crew while on set in order to guarantee access to needed resources for continuity of the shoot. We do not add the cost of meals to their compensation since it is for the taxpayers convenience. What percentage of the meals is deductible. It used to be 100% in the past, but now it is not clear. Thanks

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Best answer by qbteachmt

I marked your Duplicate topic as Duplicate, to be removed.

Did you google this?

film production meals tax reporting

I did...and it's amazing what is on the web.

https://www.irs.gov/newsroom/irs-issues-final-regulations-on-the-deduction-for-meals-and-entertainment

https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses

https://variety.com/2018/biz/news/trumps-tax-cut-roils-the-rules-sexual-harassment-1202957930/

https://www.documentary.org/feature/new-tax-code-whats-it-filmmakers

https://www.journalofaccountancy.com/news/2020/oct/irs-rules-business-meals-entertainment.html

https://webcache.googleusercontent.com/search?q=cache:lfO303D0_s4J:https://www.lexology.com/library/detail.aspx%3Fg%3Dcb15cfc7-6c19-4a94-9eae-df3d6a8c9dd1+&cd=18&hl=en&ct=clnk&gl=us

Make sure to look at dates of any guidance and responses for after the TCJA (after Dec 2017). And it matters if the talent is employee or contractors. Craft services as your staff or not, or restaurant.

"We do not add the cost of meals to their compensation since it is for the taxpayers convenience."

Yes, you need to read TCJA.

And the rules change again for 2021.

https://blog.concannonmiller.com/4thought/business-meals-how-to-use-the-reinstated-tax-deduction-for-2021

qbteachmtAnswer

Level 15

I marked your Duplicate topic as Duplicate, to be removed.

Did you google this?

film production meals tax reporting

I did...and it's amazing what is on the web.

https://www.irs.gov/newsroom/irs-issues-final-regulations-on-the-deduction-for-meals-and-entertainment

https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses

https://variety.com/2018/biz/news/trumps-tax-cut-roils-the-rules-sexual-harassment-1202957930/

https://www.documentary.org/feature/new-tax-code-whats-it-filmmakers

https://www.journalofaccountancy.com/news/2020/oct/irs-rules-business-meals-entertainment.html

https://webcache.googleusercontent.com/search?q=cache:lfO303D0_s4J:https://www.lexology.com/library/detail.aspx%3Fg%3Dcb15cfc7-6c19-4a94-9eae-df3d6a8c9dd1+&cd=18&hl=en&ct=clnk&gl=us

Make sure to look at dates of any guidance and responses for after the TCJA (after Dec 2017). And it matters if the talent is employee or contractors. Craft services as your staff or not, or restaurant.

"We do not add the cost of meals to their compensation since it is for the taxpayers convenience."

Yes, you need to read TCJA.

And the rules change again for 2021.

https://blog.concannonmiller.com/4thought/business-meals-how-to-use-the-reinstated-tax-deduction-for-2021

Don't yell at us; we're volunteers

T

taxdude02Author

Level 3

Thanks, I did already ready 5 of the 7 references you listed. It looks like my client is stuck with the 50% meals deduction despite convenience of employer issues. Since the meals will not be at a restaurant in 2021 it will still be 50%. Thanks again.

qbteachmt

Level 15

"despite convenience of employer issues." <== repealed with TCJA; meaningless now. Here's how I describe this to my clients: we all have to eat, so that is not Subsidized in full by the tax regulations.

"Since the meals will not be at a restaurant in 2021 it will still be 50%." <== business stimulus provision

Don't yell at us; we're volunteers

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