[20200406]IN11313_娱乐和餐饮业务扣除额.pdf

CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i Business Deductions for Entertainment and Meals Donald J. Marples Specialist in Public Finance April 6, 2020 Congress has passed several laws in response to the COVID-19 pandemic, including, most recently, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), whichamong its many purposesprovides tax relief to individuals and businesses. Several of the CARES Acts business tax relief provisions were accomplished by temporarily rolling back restrictions on net operating losses and interest deductions that were enacted as part of P.L. 115-97 (sometimes referred to as the Tax Cuts and Jobs Act or TCJA). As Congress continues to assess the need for further responses, it may consider temporarily rolling back other provisions enacted as part of P.L. 115-97. This Insight provides an overview of one such optionthe business deductions for meals and entertainment. Businesses are allowed to deduct a variety of expenses in determining their taxable income. The more that can be deducted, the smaller their taxable income, and the less the business will owe in taxes, all else being equal. The abil