January 13, 2021
Business meals generally are only 50% tax deductible, and have very tight restrictions around documentation of the meal, the attendees, and the business conducted.
Unexpectedly, the Consolidated Appropriations Act amended the Internal Revenue Code to allow for a 100% deduction for meal expenses for food or beverages provided by a restaurant if paid or incurred after December 31, 2020 and before January 1, 2023. Importantly, the wording of this law seems to indicate that both delivery and takeout meals may qualify for this increased tax benefit, as long as they are provided by a “restaurant”.
Normal meal expense requirements continue to apply, so make sure to document the attendees and business purpose of each meal expense.
Take advantage of this new tax benefit designed to boost the struggling restaurant industry!