For calendar year’s 2021 and 2022, the new COVID-19 relief package, formally known as the Consolidated Appropriations Act, will make major changes to the deductions for business meals. Businesses will now be able to deduct 100 percent of business meals that had previously been limited to 50 percent. It is important that businesses account for meals and entertainment in separate accounts. The pandemic has had a negative effect on the restaurant industry and it is expected that this provision will encourage businesses to frequent restaurants more often.
Please contact your Whitlock advisor if you have questions or wish to discuss further.