100% Business meal deduction is back for 2022!

100% Business Meal Deduction

For tax years 2021 and 2022 the business meal deduction has been enhanced to 100% for 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.  

• To qualify for the higher limit the business owner or an employee of the business must be present when food or beverages are provided.  
• Restaurants include businesses that prepare and sell food or beverages to retail customers for immediate on-premises or off-premises consumption. 
• For this purpose, grocery stores, convenience stores, and other businesses that primarily sell pre-packaged goods, not for immediate consumption do not qualify as restaurants. Additionally, an employer may not treat certain employer-operated eating facilities as restaurants, even if they are operated under contract by a third party. 
• The 50% limitation for business meals as it was limited under the Clinton Administration will return in 2023.