Our clients have been asking us all tax season, “What’s the deal with entertainment expenses? I hear they’re no longer deductible?” The short answer is yes, they still are. However, there are some nuanced changes that affect the amount of these deductions as well as revoking certain types of entertainment expense entirely. To paraphrase the words of Dua Lipa, “We’ve got new rules we got ‘em”.
Normally when appreciated business assets such as real estate are sold, tax is owed on the appreciation. But there’s a way to defer this tax: a Section 1031 “like kind” exchange. However, the Tax Cuts and Jobs Act (TCJA) reduces the types of property eligible for this favorable tax treatment.