Читать книгу Small Business Taxes For Dummies - Eric Tyson - Страница 31

The tax reform bill of 2017 eliminated the entertainment expense deduction for businesses. Under prior tax law, 50 percent of those expenses was deductible, for example, when a business entertained customers and even employees at sporting events, fitness clubs, and restaurants.

The new rules do include some exceptions. On-site cafeterias at a company’s offices and meals provided to employees as well as business meals associated with travel are 50 percent deductible. Meals provided to prospective customers as part of a seminar presentation are still fully deductible. Holiday parties and company picnics are also fully deductible as long as they are inclusive of everyone.

In early 2021, the Consolidated Appropriations Act 2021 introduced a temporary 100 percent deduction for expensing business meals purchased from “qualifying restaurants” from January 1, 2021, through December 31, 2022 (tax years 2021 and 2022). Qualifying restaurants per the IRS are establishments that prepare and serve food and beverages for immediate consumption, either on or off-premises.