MoldMaking Technology

DEC 2018

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36 MoldMaking Technology —— DECEMBER 2018 THE BOTTOM CONTRIBUTOR Michael J. Devereux II, CPA, CMP is a partner and director of manufacturing, distribution and plastics industry services at Mueller Prost LC. • The shop brings a customer to a baseball game but purchases tick- ets for a suite, in which food and beverages are included. The cost of the food and beverages are not separately stated on the invoice. As a result, the shop is not entitled to any deduction for the event. • The shop brings a customer to a baseball game, but the cost of the food and beverages is stated sepa- rately on the invoice. By separately stating the cost of food and bever- ages, the shop is entitled to a deduc- tion equal to 50 percent of the cost of food and beverages but still is not entitled to a deduction related to the ball game. New Guidance This new guidance provides some clar- ity for mold shops to determine which meal expenditures remain partially deductible and which do not. The tax code requires mold shops to substanti- ate their expenditures in the event of an examination, so they should segre- gate the cost of meals and entertain- ment going forward. Most shops should consider estab- lishing a separate general ledger account for entertainment expendi- tures. Also, mold shops should docu- ment these five requirements for each business meal to ensure that they may continue deducting 50 percent of their business meals. FOR MORE INFORMATION Mueller Prost 314-862-2070 mdevereux@muellerprost.com muellerprost.com moldmakingtechnology.com/blog B L OG Join the Discussion! E N G I N E E R B U I L D M A I N T A I N • Keep up on the issues affecting mold manufacturing. • Interact with industry leaders and newcomers alike. • Share insights, observations, challenges and solutions with your peers. Participate in the MoldMaking Technology Blog The MoldMaking Technology Blog is designed for you, allowing you to participate in a dialogue among professionals in the mold manufacturing industry. Conversation. Communication. Community. MOLD POLISHING & REPAIR Providing the Latest Technology for Call or go online: www.gesswein.com 800.243.4466 • Ultrasonic Polishers • Micro-TIG Welders • Laser Welders • Diamond Abrasives • Finishing Stones • Mold Polishing Classes

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