UPDATE: New Rules related to Temporary Business Meals 100% expense deduction.

UPDATE: New Rules related to Temporary Business Meals 100% expense deduction.

Jan 22, 2022


First of all, the most important question we get: What is considered a Business Meal? This is all money that a business spends buying for entertaining a client, customer, or employee. Now, there are different categories within the Business Meals and different deduction percentages for each one.


At the beginning of the second quarter of this year, the IRS published a guidance on tax relief for deductions for food or beverages from restaurants and today we want to share with you the most common questions our clients have asked us about this.


1. How long will the Temporary 100-Percent Deduction for Business Meal Expenses be in effect?

You can deduct 100% of business meals paid for between 1/1/2021 – 12/31/2022, So that gives you two complete tax years to deduct 100% of meals.


2. What can I deduct?

It’s important to remember the rules still apply:

  • You or an employee must be present at the meal meeting with a client, employees, or contractors.
  • You must discuss business during the meal and keep the same documentation as required when meals were only 50%.
  • The date
  • Total amount, including tax and tip
  • The name of the restaurant/place
  • Details of the occasion (who is in attendance, including titles and business names, and how the meal relates to business purposes)

3. Which Restaurants are considered for claiming 100%?

The IRS clarifies that the 100% deduction is available for food or beverages provided by a restaurant. "A restaurant does not include businesses that primarily sell pre-packaged food or beverages not for immediate consumption. The notice specifically calls out grocery stores, specialty food stores, liquor stores, convenience stores, vending machines and kiosks as examples of businesses likely to primarily sell pre-packaged items."

The following table contains each of the deductions in detail:


For more information you can consult the IRS Guidance for Temporary Meal Deduction.

If you have questions related to Temporary Business Meals 100% expense deduction please contact us at [email protected]