The Consolidated Appropriations Act includes a provision that removes the 50% limit on deducting eligible business meals in 2021 and 2022. In general, the ordinary and necessary food and beverage expenses of operating a business are deductible. The new law allows a 100% deduction for these expenses for food or beverages provided by a restaurant. The use of the word “by” (rather than “in”) a restaurant makes it clear that the new rule isn’t limited to meals eaten on a restaurant’s premises. Takeout and delivery meals provided by a restaurant are also fully deductible. The law doesn’t change the other rules for deducting business meals and entertainment expenses are still nondeductible. Call or visit our website for more information! www.mjscpa.com/
