Beginning on January 1, 2021 and lasting through December 31, 2022, the IRS is allowing businesses to be able to deduct 100% of the expense of meals that meet certain requirements.
These requirements include:
Business Owner, or employee of the business acting on behalf of the owner, must be present
Meals must be from a restaurant that serves food to be consumed immediately either onsite or off-site
The meal expense cannot be lavish or extravagant
The cost CAN include taxes and tips
There must be a business purpose for the meeting
Record the following to document the business meal along with a copy of the receipt:
Date
Meeting participants
Meeting topic
Restaurant
Total of meal including tax and tips
Any other pertinent information
I’m attaching an excel sheet below to aid in recording these transactions if you are not already using some type of bookkeeping software.
Here are some additional resources from the IRS to ensure you are keeping the correct information as well as meeting the requirements: