The temporary provision that allowed meals to be 100 percent deductible in
2021 remains unchanged for 2022.

The Provision allows for a full deduction of expenses paid or incurred after
December 31, 2021 and before January 1,2023 for food or beverages provided by a restaurant. 

 

 

This means you may see a higher deduction for business meals on your tax
return this year. In order to qualify, the business expense must have been
incurred at a restaurant. The IRS defines a restaurant as “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
business’s premise”.

Meal expenses related to prepackaged food or beverages are excluded from the
100 percent deduction. The provision specifically excludes expenses from a
grocery store; specialty food store; beer, wine, or liquor store; drug store;
convenience store; newsstand; or a vending machine, or kiosk.

Excluded meal expenses are still subject to the 50 percent limitation.

The 100 percent deduction is also subject to the same rules as the 50
percent deduction.