Business Deductions
A recent tax law provides a 100% business deduction (up from 50%) for food and beverage expenses in 2021 and 2022 as long as they’re “provided by a restaurant.” The IRS has now defined the term “restaurant” for purposes of the deduction. According to the IRS, the term “restaurant” means a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the restaurant’s premises. However, a restaurant doesn’t include a business that primarily sells pre-packaged food or beverages not for immediate consumption, such as a grocery store. For more information: https://bit.ly/3dQAdGq
