Temporary 100 Percent Deduction for Business Meal Expenses
provides guidance under the Taxpayer Certainty and Disaster Relief Act of 2020, which added a temporary exception to the 50 percent limit on the amount that businesses may deduct for food or beverages.
From January 1, 2021 through December 31, 2022, businesses can claim 100 percent of their food or beverage expenses paid to restaurants as long as the business owner or an employee of the business is present when food or beverages are provided. In addition, the expense must not be lavish or extravagant.
“Restaurants” include businesses that prepare and sell food or beverages to retail customers for immediate on-premises and/or off-premises consumption. This does not include businesses that primarily sell pre-packaged goods not for immediate consumption, such as grocery stores and convenience stores. Get details here