Can you still deduct entertainment on Schedule C?

[MinhT · Accepted solution]

No.

Prior tax law permitted a taxpayer to deduct expenses for entertainment, amusement or recreation provided that it was directly related to the taxpayer’s trade or business. The Tax Cuts and Jobs Act (TCJA) amends that provision and disallows a deduction for expenses incurred by a taxpayer after December 31, 2017 and before January 1, 2026, despite their being directly related to the taxpayer’s trade or business, with respect to:

• Activities normally considered to be entertainment, amusement or recreation;
• Club dues or fees for any club organized for the purpose of business, pleasure, recreation or any other social purpose;
• A facility used in connection with any of those activities.