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(Art Credit: Sisi Recht) This article is posted with permission from our partner IRS and originally appeared on the IRS blog at: https://www.irs.gov/newsroom/heres-what-businesses-need-to-know-about-the-enhanced-business-meal-deduction Subscribe to IRS tax tips here. The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction. For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal. To qualify for the enhanced deduction:
Grocery stores, convenience stores and other businesses that mostly sell pre-packaged goods not for immediate consumption, do not qualify as restaurants. Employers may not treat certain employer-operated eating facilities as restaurants, even if they operate under contract by a third party. Here's what business owners need to know about certain costs:
Entertainment eventsBusiness owners may be able to deduct the costs of meals and beverages provided during an entertainment event if either of these apply:
Businesses should review the special recordkeeping rules that apply to business meals. More information:via Freelancers Union Blog https://blog.freelancersunion.org/2022/06/30/heres-what-businesses-need-to-know-about-the-enhanced-business-meal-deduction/
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AuthorI have 5+ years experience working as a medical transcriptionist. When I am not working, I enjoy sports like playing basketball or judo. I love making friends and connections. Archives
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