Two-Year Tax Deduction on Dining Expenses Benefits Restaurants and Businesses
Congress recently passed the Consolidated Appropriations Act, which includes making business meals, to include alcoholic beverages, fully tax deductible. Employers are now able to deduct 100% of their business meal expenses that are incurred in 2021 and 2022.
This means that a business owner can now dine with valued or prospective clients for breakfast, lunch, or dinner and take 100% tax deduction.
Prior, businesses have only been able to deduct 50% of their meal expenses off their federal taxes. The idea behind this 100% tax deduction is to increase spending in restaurants and create more income for employees. It overall is a win-win because companies get tax credit for supporting their local restaurants.