The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return, including the enhanced business meal deduction.
For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.
Grocery stores, convenience stores, and other businesses that mostly sell pre-packaged goods not for immediate consumption, do not qualify as restaurants.
Employers may not treat certain employer-operated eating facilities as restaurants, even if they
operate under contract by a third party.
Business owners may be able to deduct the costs of meals and beverages provided during an entertainment event if either:
Businesses should review the special recordkeeping rules that apply to business meals.
The experienced team of Johnson Duffie business law attorneys can help you. For more information, contact Wayne M. Pecht, Esquire at 717-761-4540 or [email protected].