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 the business deduction for meals.
The deduction was originally reduced to 50 percent of the cost of meals more than thirty years ago. However, the Consolidated Appropriations Act, 2021, allows for businesses to deduct the full amount of meals, including beverages, provided at a restaurant. The 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 or contact us online to discuss this temporary enhancement to the meals deduction or any other tax relief.