Meals and Entertainment

This template calculates the 50% disallowance of meal and entertainment deductions under IRC Sec. 274(n) and identifies nondeductible travel and entertainment expenses. It also calculates the meals and beverage expense for employees subject to the Department of Transportation hours of service rules.Using information from the calculations, the template summarizes the deductible and nondeductible portion of meals and entertainment for tax reporting purposes. Additionally, it calculates the total nondeductible travel and entertainment to be reported as expenses recorded on the books for the current year that are not included/deducted on the tax return.

Entering Information

All of the information needed to produce the calculations is entered on the Input worksheet. The yellow highlighted cells are calculated fields, and no data should be entered in these cells. Gray cells are not calculated fields, but data should not be entered in these cells.

Enter the following information:

Meals and entertainment subject to disallowance (see below)

Club dues (excluded from compensation)

Spousal travel (excluded from compensation)

Entertainment facilities

Excess costs for convention on cruise ship

Employee achievement awards exceeding $400

Disallowed luxury water travel

Business gifts in excess of $25

Other nondeductible travel and entertainment expenses

Meals and beverage expense for employees subject to DOT hours of service rules

Skybox expense

Face value of non-luxury box seat ticket

Number of seats in skybox

Cost of entertainment tickets

Face value of entertainment tickets