Jacobs & Company, LLP logo

Jacobs & Company, LLP

2161 Palm Beach Lakes Boulevard, Suite #450

West Palm Beach, FL 33409


Phone: 561-615-8585

Fax:     561-615-8888


Website: www.jacobsandcompanyCPA.com

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.


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

Please include name of person that directed you to my online newsletter so I can thank them personally.


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.