The tax law limits deductions for travel and entertainment (T&E) expenses, including meals. But if an arrangement involves a third party—say, a leasing company—who does the limit apply to?
According to new final regulations issued by the IRS, the parties can determine which one is subject to the limit. Absent such an agreement, the 50% limit applies to the party making the reimbursements. (T.D. 9625, Reg. 1.274-2, 07/31/2013)