Update to Meals and Entertainment DeductionUpdate to Meals and Entertainment Deduction
Starting January 1, 2023 the meals and entertainment expenses are returning to the pre-covid amounts. Most client meetings are going to be 50% now instead 100% of meal cost at a restaurant. A review of your meal and entertainment expense and the return on investment from it should be evaluated now at the 50% deductible amount. Many employee provided meals still remain at the 100% deduction. This would be for long days at the office as employees try to meet a deadline for a project or task. At least half of employees need to be present when ordering food. Holiday and team building events also still remain at 100% deductible. Clients are advised to contact us if you have any questions about your meal and entertainment deductions.