OnCall Services of Vermont provides paging services for plum

On-Call Services of Vermont provides paging services for plumbers while they are on the road performing services. The paging service must be staffed 24 hours a day and is located in a rural location in order to save on rental costs.

On-Call Services requires that their employees remain on site during their lunch hour and as a result provides on-premises meals for their convenience. On-Call Services has requested your services in determining the deductibility of providing these meals to their employees in 2017 and whether or a not there is a limit on the amount deductible. In addition, they would like you to explain whether your advice will change for 2018 based on the passage of H.R. 1 (Tax Cuts and Jobs Act).

Solution

As per Current Regime, no limit has been prescribed for deduction of meal expenses of employees by employer in 2017.

However, as per bill of 2017, Deduction for expenditure on Food and meales provided by Employer to employees was considered and enacted and applicable after year 2025. That meand deduction can be taken by employer for such expenses after 2025. Currently, no deduction is available for the same.