![]() ![]() The notice specifically calls out grocery stores, specialty food stores, liquor stores, convenience stores, vending machines and kiosks as examples of businesses likely to primarily sell pre-packaged items." "A restaurant does not include businesses that primarily sell pre-packaged food or beverages not for immediate consumption. Is available for food or beverages provided by a restaurant," wrote Kathleen King, managing director at professional services firm Alvarez & Marsal in Washington, D.C. ![]() "The notice clarifies that the 100 percent deduction "For all other entertainment and business-meal expenses, the 50 percent meal deduction would still apply." 31, 2022, a business may claim 100 percent of food or beverage expenses paid to restaurants, assuming the business owner (or employee) is present when provided and the expense is not lavish or extravagant under the circumstances," Nash explained. The notice " provides important details that should be applied when determining whether an expense qualifies for the larger deduction amount," wrote Alexis Nash, a partner at accounting and tax advisory firm Wilson Lewis in Atlanta. The notice explains when the temporary 100 percent deduction applies and when the standard 50 percent limit continues to apply for purposes of Section 274 of the Internal Revenue Code. ![]() Notice 2021-25 to provide guidance on the higher limit for deducting business meals. The Consolidated Appropriations Act, 2021, increased the business-meal deduction for the cost of food and beverages provided by a restaurant from 50 percent to 100 percent in 20, if certain conditions are met. ![]()
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