Prior to passage of the TCJA, a business was allowed to take a deduction of up to 50% of the cost of business-related entertainment expenses. Generally, the value of the entertainment was not taxed as income to the persons who benefit from the expenditures. The effect provided the hosts and their guests with a nontaxable fringe benefit. With the passage of TCJA, entertainment expenses are no longer allowed as a federal deduction. Massachusetts adopts this change as Massachusetts follows the current IRC in effect for trade or business expenses under IRC § 62(a)(1).

Origin: IRC § 162, 274; Notice 2018-76

Item Number
FY2017
FY2018
FY2019
FY2020
FY2021
1.019
13.2
13.6
0.0
0.0
0.0
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