Meals & Entertainment: The new law eliminates the deduction for expenses related to entertainment, amusement or recreation. Taxpayers can continue to deduct 50% of the cost of business meals if the taxpayer or an employee of the taxpayer is present and other conditions are met. The meals may be provided to a current or potential business customer, client, consultant or similar business contact.
Qualified Transportation: The new law disallows deductions for expenses associated with transportation fringe benefits or expenses incurred providing transportation for commuting. There’s an exception when the transportation expenses are necessary for employee safety.