If your business ever buys meals for your employees or for other official business, then we have good news for you! The IRS announced that until January 1st of 2023, businesses can claim a 100% tax deduction for their meals purchased from restaurants.
There are some clarifications, however, regarding which types of restaurants qualify.
Who does this include?
Your business can claim 100% deduction for meals from any restaurant that makes food intended to be eaten immediately. Basically, this includes any standard restaurant and includes both dine-in and take-out.
Who does this not include?
Your business can not claim 100% deduction for food purchased from these types of food vendors:
Specialty food store
Beer, wine, or liquor stores
Vending machines or kiosks
Any food bought from a business that primarily sells prepackaged food intended for eating later is only eligible for 50% deduction.
Also not eligible for deduction is food that is purchased at an on-site eating facility, even if it is a third-party company under contract.
Need Help Keeping Track of Deductions?
Keeping accurate and detailed records of your business tax expenses is essential if you want to claim deductions at tax time. What you need is an efficient and comprehensive system in place that will work for you so that you can focus on running your business.
That’s where we come in. With our bookkeeping service package, you get a dedicated bookkeeping expert who will work with you one-on-one to make sure that you get the support you need so that you won’t miss out on any more tax deductions.