Business Expense Deductions Affected by New Tax Law

The tax rules related to meals and entertainment have changed, and left some uncertainty in the gap between the old law and the new. Before the Tax Cuts and Jobs Act, the deduction allowed for entertainment expenses was limited to 50 percent of the amount otherwise deductible. Under the TCJA, the deduction for entertainment is completely repealed.

Big Changes for Pass-Through Entities

One of the most talked-about and Jobs Act is the 20 percent deduction on pass-through income from sole proprietorships, partnerships, S corporations, and LLCs. Because so many construction-related businesses are organized as pass-through entities, many contractors have greeted this provision with understandable enthusiasm.