TAX YEARS 2021 & 2022 - MEALS ONCE 50% DEDUCTIBLE NOW 100%

The Covid-19 Relief bill signed on 12/27/20 made changes to deductions for business meals for tax years 2021 AND 2022.

NOTE: These changes do not affect tax year 2020.

In 2021 and 2022, business meals that were deductible prior at 50% will be 100% deductible. However, this only includes food and beverages purchased from a restaurant. This new deduction was created to help the restaurant industry recover.

Below are some examples of meals that are 50% deductible for tax year 2020 and will be 100% deductible for 2021 and 2022. Keep in mind, the meals must be from a restaurant. The meals also cannot be lavish or extravagant.

Travel Meals
Meals with vendors, colleagues, clients, etc.
Meals at a seminar or convention
Meals brought into the office during meetings

Snacks, and drinks you provide in the office continue to be 100% deductible. Such as coffee, water, creamer, fruit, etc.

Keep in mind, entertainment expenses are still not deductible business expenses.

~ Brandon & Christi are successful business owners who enjoy traveling and making a mess in the kitchen with their two daughters. They reside in the Dallas, TX suburbs and work with businesses throughout the U.S.

The article is for informational purposes only and should not be construed as business, accounting or legal advice. Details are subject to change without notice.