Business Meals 100% Deductible for Year 2021
For tax years 2021 and 2022 only, the business meal expense deduction has been increased from 50% to 100% for food or beverages from restaurants.
Amounts paid to restaurants qualify as long as the business owner (or an employee of the business) is present when food or beverages are provided and the expense is not lavish or extravagant.
Restaurants include businesses that prepare and sell food or beverages to retail customers for immediate on-premises and/or off-premises consumption. However, restaurants do not include businesses that primarily sell pre-packaged goods not for immediate consumption, such as grocery stores and convenience stores.
Food delivery from restaurants using services such as Uber Eats, DoorDash, Grubhub, Postmates qualify.
NOTE: An employer may NOT treat certain employer-operated eating facilities as restaurants, even if these facilities are operated by a third party under contract with the employer.
