Business owners have until the end of 2022 to take advantage of the IRS Regulations on Meal & Entertainment Tax Deductions.
In September 2020, the Internal Revenue Service issued final regulations on business expense deductions following changes made by the Tax Cuts and Jobs Act (TCJA).
What Expenses Are Deductible and What Are not?
The final code defines eligible and non-eligible deductions and exceptions related to
- Entertainment Expenditures
- Business Meal Expenses
- Travel Meal Expenses
- Other Food and Beverage Food and Beverage
- Employer-provided Meals
Meals and Entertainment Tax Deduction Table
Amount Deductible for Tax Years 2021-2022
| Description | 100% | 50% | Zero |
| Restaurant meals with clients and prospects. | X | ||
| Entertainment such as baseball and football games with clients and prospects. | X | ||
| Employee meals for the convenience of the employer and served by an in-house cafeteria. | X | ||
| Employee meals for a required business meeting, purchased from a restaurant | X | ||
| Meal served at the chamber of commerce meeting held in a hotel meeting room. | X | ||
| Meal consumed in a fancy restaurant while in overnight business travel status. | X | ||
| Meals cooked by you in your hotel room kitchen while traveling away from home overnight. | X | ||
| Year-end party for employees and spouses. | X | ||
| Golf outings for employees and spouses. | X | ||
| Year-end party for customers classified as entertainment. | X | ||
| Meals made on premises for the general public at marketing presentations. | X | ||
| Team-building recreational event for all employees. | X | ||
| Golf, theater, or football game with your best customer. | X | ||
| Meal with a prospective customer at the country club following your non-deductible round of golf. | X |
Call us if you have unanswered questions about the tax deductions for meals and entertainment.