Source: Consolidated Appropriations Act, 2021. PL 116-260.
100% business deduction for food from restaurant.
For 2021 and 2022, to help the restaurant industry, Congress has removed the 50% limitation for business meals from a restaurant. Restaurant is defined as a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business’s premises.
Restaurants are not:
- grocery, beer, wine or liquor store
- vending machine or kiosk
- an eating facility located on the employer’s business premises
THE ABOVE CONTINUE TO RECEIVE THE 50% DEDUCTION ‘HAIRCUT.’
In your accounting records for 2021/2022 it will be important that you specifically segregate business food that is not from a restaurant and continues to be subject to the 50% rule.
