At the very last minute in 2020, Congress temporarily changed the meals and entertainment deduction for small businesses. In an effort to help struggling restaurants, for 2021 and 2022 ONLY (so far, like everything else with Congress this is subject to change), meals are 100% deductible regardless of DOT rules.
They can be dine in or carry out, and must be “hot” meals – groceries do not count.
This is expected to expire end of 2022, but I’m hopeful that it will be extended.
Donna Harris holds a BSci in Accounting and is the owner of Bookkeeping Made Simple.
Donna Harris, BSci Accounting, MBA, founded Bookkeeping Made Simple with the understanding that small businesses is the heart of the American economy. After offering to do books for a friend who said he didn't have enough work to keep someone in the office 20 hours a week, she recognized the need for an efficient, online system. She has 20 years of bookkeeping and accounting experience and is excited to help small business owners achieve their goals. She enjoys spending time with her family and traveling whenever possible. She also loves reading, hiking, camping, cooking, yoga, and fitness. A huge believer in lifelong education, she is currently working on her master's in Accounting.