TEMPORARY Meals Deduction Change
Related Posts:⭐️Business Meal Deduction 101
There have been so many tax changes since the beginning of the pandemic but this one may have slipped past you...
You may be familiar with the regular IRS rule that only allows you to deduct 50% of business meals. You can read about it here: Business Meal Deduction 101
Did you know under the new Taxpayer Certainty and Disaster Relieve Act of 2020 (passed at the end of December 2020) allows you to temporarily deduct 100% of business meals? Yup, it's true!
What does temporary mean?
You can deduct 100% of business meals paid for between 1/1/2021 - 12/31/2022, So that gives you two complete tax years to deduct 100% of meals.
What can I deduct?
It's important to remember the rules still apply. You or an employee must be present at the meal meeting with a client, employees, or contractors. You must discuss business during the meal and keep the same documentation as required when meals were only 50%. You can see read more about the documentation here: Business Meal Deduction 101
REFERENCES:
IRS Guidance for Temporary Meal Deduction
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