Meal Expenses can be tricky when you are running your business. They bring up a lot of questions. What to track, what counts, and how to make deductions for meals.
Typically, anytime you purchase a meal at a restaurant for your business that meal is only 50% deductible on your taxes. This includes when it is for you and an employee or you and a client or vendor.
However, in December 2020, an act was passed that allows you to deduct 100% of business meals for a limited amount of time.
From January 1, 2021, to December 31, 2022, anytime you enjoy a meal at a restaurant with an employee, client, vendor, etc, you can now take a 100% deduction on meals on your taxes!
We are already halfway through the year. It’s time to make sure your bookkeeping is on point!
Pull out that calendar and start looking back at any possible meetings where you might not have put into your books because it wasn’t worth it at the time. With a 100% deduction for meals, those times you grabbed coffee or lunch with an employee can really add up.
And don’t forget, this benefit is good until the end of 2022. We’ll see if it gets extended.
In the meantime, when you file taxes in 2021, be sure to note that all business meals at a restaurant are 100% deductible!
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