Did someone say lunch?

If you do your best business deals over a good meal, you’re in luck. In an effort to boost the struggling restaurant industry, the business meal deduction has been temporarily increased from 50% to 100% with the passage of the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Here is how you can take advantage of this increase.

  • The food and beverage must be provided by a restaurant, either on or off premises. Yes! That means delivery is included.
  • A “restaurant” is considered any place that prepares and sells food or beverages to customers for immediate consumption. This leaves out grocery stores, convenience stores, vending machines, drug stores and liquor stores.
  • Employer-operated eating facilities do not qualify, even if operated by a third party.
  • Refrain from overdoing it. The disallowance of lavish or extravagant meals still stands.
  • Entertainment is still non-deductible, so be sure to have any business meals separated from entertainment expenses.

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