The upcoming holiday season is a great time to take your clients, business partners, or employees out to remind them how much you appreciate them. 

 

Here’s a reminder of on the 2022 business meal deduction:

Business owners can deduct 100% of business-related meal expenses when purchased from a restaurant.

The term “restaurant” is a business that sells food for immediate consumption, even if the food is not immediately consumed.

This means you can purchase food to-go from a restaurant and serve it at the office.

This also means that grocery stores, specialty food stores, liquor stores, convenience stores and vending machines that sell prepackaged food do not qualify.

However, if food is purchased from one of these non-restaurant establishments, you can still take a deduction for 50% of the costs.

And, as with all ordinary and necessary business expenses, the meal expenses cannot be lavish or extravagant to qualify for the deduction.

Keep in mind that in 2023, the business meal deduction will revert to pre-2017 rules, making meals once again more difficult to deduct.

If you’d like to discuss other options for your small business, be sure to contact us to schedule your tax planning appointment before the end of the year!

 

Small business owners dine out to take the business meals deduction.

Small business owner dines out to take advantage of the 100% business meal tax deduction.

*As always, these tax strategies should be discussed with a qualified tax preparer, tax accountant, or tax attorney before being implemented.*