The Tax Cuts and Jobs Act does not specifically address the deductibility of expenses for business meals.
The Department of the Treasury and the Internal Revenue Service intend to publish proposed regulations which will include guidance on the deductibility of them, but until then, here are some examples provided by IRS Notice 2018-76:
Example 1:
Taxpayer A invites B, a business contact, to a baseball game. A purchases tickets for A and B to attend the game. While at the game, A buys hot dogs and drinks for A and B.
The baseball game is entertainment as defined and, thus, the cost of the game tickets is an Entertainment expense and is not deductible by A. The cost of the hot dogs and drinks, which are purchased separately from the game tickets, is not an entertainment expense. Therefore, A may deduct 50 percent of the expenses associated with the hot dogs and drinks purchased at the game.
Example 2:
Taxpayer C invites D, a business contact, to a basketball game. C purchases tickets for C and D to attend the game in a suite, where they have access to food and beverages. The cost of the basketball game tickets, as stated on the invoice, includes the food and beverages.
The basketball game is entertainment as and, thus, the cost of the game tickets is an entertainment expense and is not deductible by C. The cost of the food and beverages, which are not purchased separately from the game tickets, is not stated separately on the invoice. Thus, the cost of the food and beverages also is an entertainment expense. Therefore, C may not deduct any of the expenses associated with the basketball game.
Example 3:
Assume the same facts as in Example 2, except that the invoice for the basketball game tickets separately states the cost of the food and beverages.
As in Example 2, the basketball game is entertainment and, thus, the cost of the game tickets, other than the cost of the food and beverages, is an entertainment expense and is not deductible by C. However, the cost of the food and beverages, which is stated separately on the invoice for the game tickets, is not an entertainment expense, C may deduct 50 percent of the expenses associated with the food and beverages provided at the game.