Update to Meals and Entertainment Deduction
Update to Meals and Entertainment Deduction

Update 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.