Hotta Liesenberg Saito LLP logo

Hotta Liesenberg Saito LLP

970 West 190th Street Suite 900, Torrance, CA 90502-1052

 

Phone: 424-246-2000

Fax:     424-246-2005

 

August 2021

Clarifying Business Meal Expenses for 2021 and 2022

Insights and Tips

The IRS recently clarified what types of business meals qualify for 100% expensing in 2021 and 2022. Meals must come from a restaurant, defined as any business preparing and selling food or beverage to retail customers for immediate consumption. Whether the food is consumed on the premises doesn’t matter.


Businesses selling pre-packaged food and drink that’s not for immediate consumption (e.g., grocery stores, liquor stores, and vending machines) don’t qualify.


This means dine-in, takeout and food carts/trucks all qualify. Everything else is out.


Remember that for a business meal to qualify as tax-deductible, it must have a business purpose, must not be lavish or extravagant, must have the business owner or employee present along with a business contact (e.g., customer or vendor) and must meet the ordinary and necessary definition.


Be sure to keep itemized receipts, not just the signed credit card slip, and write on the receipt who was present and what topics were discussed.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.