The party’s over! Businesses can’t write off entertainment expenses under new tax law . Under new tax law, companies may be forced to slash entertainment expenses.

Marketwatch reports:

Forget floor seats to a Lakers game or front-row Beyoncé tickets on another company’s dime. Under the new tax law, businesses can’t deduct most entertainment expenses anymore.

Businesses will be impacted in a number of ways this year under the Tax Cuts and Jobs Act, which lowers individual and corporate tax rates, among other revisions. Starting in 2018, the costs of entertainment expenses will no longer be deductible. Under the old tax code, 50% of the entertainment expenses were deductible.


“You will see behaviors change,” said Michael Chen, chief executive officer and founder of online tax preparation software Henry.tax. Some businesses may stop wining and dining clients at sports games and concerts, and kiss goodbye to the two-martini lunch after 18 holes on the golf course. Even if you close a multi-million-dollar deal on a weekend ski trip, the expense would not be 50% deductible, said Ruth Wimer, executive compensation lawyer at law firm Winston & Strawn.

This may really hit the pro sports bubble.... hard.