Consolidated Appropriations Act 2021admin
New Temporary 100% Business Meals Deduction
After long negotiations and delay, the President signed the Consolidated Appropriations Act, 2021 on December 27, 2020. In an effort to shore up the dining industry, the relief legislation includes a temporary return of a deduction for business meals.
The deduction was originally reduced to 50 percent of the cost of business meals more than 30 years ago. However, the Consolidated Appropriations Act, 2021, now allows a deduction for the full amount (100%) of business meals, including beverages, provided by a restaurant. The enhanced deduction is allowed for amounts paid or incurred after December 31, 2020 through December 31, 2022.
This is only one of many provisions in the Consolidated Appropriations Act, 2021 benefiting businesses. Please call our office to discuss this temporary enhancement to the meal’s
deduction or any other tax relief.