You can deduct even more if yours is a “heavy” vehicle-an SUV, pickup truck, or van, for instance.įor a complete rundown of the new vehicle depreciation allowances, check out this article from Iowa State University.įurther reading: What Is Depreciation? and How Do You Calculate It? The depreciation allowances for your second, third, fourth, and additional years of owning a passenger vehicle for work have also been increased. Some perspective: the maximum first year depreciation allowance in 2017 was $10,000. Thanks to the TCJA, business owners who buy a passenger vehicle for work purposes in 2018 or later benefit from a significantly higher depreciation allowance. You can now deduct more for car depreciation Transportation Fringe Benefits (Transit passes, employee parking, etc.) Meals & Entertainment (Included in Compensation) Type of ExpenseĮntertaining Clients (Concert tickets, golf games, etc.) In the past, when employers provided employees with office snacks and meals at work, they were able to deduct 100% of the cost. One other deduction has been reduced, but not entirely eliminated.
![business tax write offs 2018 business tax write offs 2018](https://www.gannett-cdn.com/authoring/2018/02/15/NBCC/ghows-PA-651f3227-5f8e-24dd-e053-0100007f4954-4de30029.jpeg)
Note that in 20, client meals from a restaurant will be 100% deductible. However, the 50% expense deduction for client meals is still in effect. But as of 2018, you cannot deduct any client entertainment costs from your taxes-including golf games, football games, concert tickets, and any other form of client entertainment. Now, they can’t be deducted at all (except reimbursable costs, like parking downtown in another city for a business meeting-that’s still 100% deductible.)Īlso, client entertainment expenses used to be 50% deductible. In 2017, employee transit and parking benefits were 100% deductible.
![business tax write offs 2018 business tax write offs 2018](https://i.gr-assets.com/images/S/compressed.photo.goodreads.com/books/1618294547l/38522236.jpg)
Other expense deductions are cut in half. The TCJA completely eliminates some common expense deductions for businesses.
![business tax write offs 2018 business tax write offs 2018](https://images-na.ssl-images-amazon.com/images/I/91I5cPXyx9L.jpg)
How the tax reform affects tax deductions