IRS Cuts Entertainment Tax Break Trump Now Favors, Amid Virus
- GOP tax law restricted deductions for client meals, tickets
- Trump says Congress should ‘quickly’ restore tax break
Donald Trump speaks to members of the media on the South Lawn of the White House in Washington, D.C. on Sept. 30.
Photographer: Yuri Gripas/Abaca/Bloomberg
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The Internal Revenue Service issued guidelines Wednesday scaling back a tax break for client entertainment, following through on an element of President Donald Trump’s 2017 tax overhaul that he has said he wants to reverse amid the virus pandemic.
Trump’s tax law eliminated the deduction for so-called entertainment expenses -- golf outings, cruises and concert tickets, although it left in place a 50% break for business meals. The rules out on Wednesday finalize implementation of the 2017 legislation, specifying how accountants should define client meals.