The September 2018 issue of Variety Magazine featured the article Trump Tax Cuts Roils the Rules, written by Brad Cohen. Brad, Partner at Jeffer Mangels Butler & Mitchell LLP, is a friend and industry colleague of Dunn, Pariser & Peyrot and as such, we are pleased to share his insight with our network. In his article, Brad discusses some of the unintended consequences brought on by the Tax Cuts and Jobs Act, signed into law in December, 2017. In particular, he focuses on the impact some of the provisions will have on the entertainment industry.
Brad’s tax discussion touches on the always controversial topic of sexual harassment, the deductibility of business meal expenses, the new 20% deduction of qualified pass-through income provided by Section 199A, the elimination of the miscellaneous itemized deductions for unreimbursed business expenses, as well as the benefits provided by loan-out corporations.
For the link to the full article, click here.
**DPP UPDATE**
It is important to note that after the article was released, on October 3rd, 2018, the IRS issued IRS Notice 2018-76, providing guidance as to the deductibility of meals provided in connection with entertainment. Under this Notice, food and beverages provided in connection with entertainment remain 50% tax deductible if purchased separately from the entertainment or if the cost of these is stated separately from the cost of the entertainment. Until the IRS publishes proposed regulations to further clarify the deductibility of business meals, taxpayers may rely on this Notice. We recommend that you consult with your tax advisor.
If you have any questions, please feel free to contact us.