top of page
Search
Writer's pictureStephanie Peterson

Business Meal Tax Deduction Changes for 2021 & 2022

Updated: Jul 21, 2022



The Consolidated Appropriations Act, 2021, increased the business meal deduction for the cost of food and beverages from 50% to 100% for 2021 and 2022, under certain conditions. This temporary 100% deduction can be utilized when the standard 50% limit continues to apply for purposes under Section 274 of the Internal Revenue Code. The Act provides a 100% deduction on business meals and beverages provided by a restaurant, including any carry-out or delivery meals, as long as a business owner or employee is present. Thus, the meal expense must not be lavish or extravagant under any circumstances. The Act excludes any foods or beverages that are sold pre-packaged and are not for immediate consumption. Foods purchased from grocery stores, liquor stores, convenience stores, and vending machines are disqualified from the 100% deduction, and the 50% deduction would then apply to those expenses. Additionally, food purchased from an onsite cafeteria for the purpose of furnishing employee meals or any employer-operated eating facility does not count as a qualifying restaurant.


Are you looking to outsource your business's accounting? If so, I can help, contact me today! I specialize in QuickBooks Online, QuickBooks Desktop Pro (Windows), QuickBooks Desktop Premier, and Quickbooks Enterprise, and can take care of all of your accounting and bookkeeping needs.




Comments


bottom of page