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Business meals “provided by a restaurant” are 100% deductible this year and next.

Reminder:

The Consolidated Appropriations Act of 2021 suspended the 50% limit for deducting business meals (food & beverages) “provided by a restaurant” for calendar years 2021 and 2022.


Since the term “restaurant” is not defined in the Internal Revenue Code, I suggest sticking to the commonplace definition. “Eat-in” dining establishments are certainly covered. As to other food providers, such as caterers not associated with fixed dining establishments, clear guidance has not been provided. Carry-out only establishments (such as most Pizza Huts in this area) are probably fine. (Grocery store catering where store has no eat-in facility? Don’t know… What about food trucks? Good question….)


The other requirements (meals must be ordinary & necessary, not extravagant, must have a business purpose, employees and/or customers/vendors must be present, etc.) still apply.


Please let me know if you have questions about this or other matters.


“A stitch in time saves a bird in hand.”