Did you know that business meals are now 100% deductible for the years 2021 and 2022? Unless there is an extension passed, this will go back to 50% tax deduction allowance on January 1, 2023.
IRS guidelines to receive the 100% deduction include these factors:
1. the meal (food and beverage) must be purchased at a restaurant (this means prepared food from a grocery store doesn’t count),
2. the tax payer or employee of the tax payer must be present during the meal,
3. and the expense is not lavish or extravagant under the circumstances.
This temporary 100% deduction was designed to help restaurants, many of which have been hard-hit by the COVID-19 pandemic.
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