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
Meals and Entertainment Subject to Disallowance:
To calculate meals and entertainment subject to disallowance, type the following information:
- Account name
- Account number
- Total amount per account