Typically, the IRS caps the food & beverage deduction limit at 50%. However, beginning January 1, 2021, through December 31, 2022, the IRS allows a 100% deduction for business food or beverages from restaurants.
For the technical details, make a note of the limitations listed here. In the meantime, know that pre-packaged food—like quick meals from a convenience store—doesn’t count, and the owner or an employee of the business must be physically present for the meal.
As you continue to navigate these strange pandemic times, we encourage you to save your meal receipts, support local restaurants, and enjoy the added tax relief when you build face-to-face relationships over a delicious meal!
Contact MLP Accounting & Consulting today to ensure you’re receiving your accurate deduction.