The IRS recently approved a temporary 100% deduction for some business meal expenses incurred during the 2021 and 2022 calendar years.
In order to qualify, expenses must meet the following criteria:
- Paid or incurred after 12/31/20 and before 01/01/2023 with the meal provided by a restaurant.
- A restaurant is defined as “a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business’s premises.”
Please note the following entities are not considered a restaurant for the purposes of this deduction: “a business that primarily sells pre-packaged food or beverages not for immediate consumption, such as a grocery store; specialty food store; beer, wine, or liquor store; drug store; convenience store; newsstand; or a vending machine or kiosk.”