Meals and Entertainment - what can you deduct?

By
Industry Observer with Green Krist CPA PLLC 34463

Have you missed partying and having business meals with your prospects, customers, and employees?

Well, get ready to start again. Soon, COVID-19 will behind us. It could be just a few short months away.

To help you get ready, check the table below for what you can do in 2021 and 2022 as the law stands now: 

 

Amount Deductible for Tax Years 2021-2022

Description

100%

50%

Zero

Restaurant meals with clients and prospects

X

 

 

Entertainment such as baseball and football games with clients and prospects

 

 

X

Employee meals for convenience of employer, served by in-house cafeteria

 

X

 

Employee meals for required business meeting, purchased from a restaurant

X

 

 

Meal served at chamber of commerce meeting held in a hotel meeting room

X

 

 

Meal consumed in a fancy restaurant while in overnight business travel status

X

 

 

Meals cooked by you in your hotel room kitchen while traveling away from home overnight

 

X

 

Year-end party for employees and spouses

X

 

 

Golf outing for employees and spouses

X

 

 

Year-end party for customers classified as entertainment

 

 

X

Meals made on premises for general public at marketing presentation

X

 

 

Team-building recreational event for all employees

X

 

 

Golf, theater, or football game with your best customer

 

 

X

Meal with a prospective customer at the country club following your non-deductible round of golf

X

 

 

Green Krist, CPA  specializes in assisting taxpayers with IRS and North Carolina Department of Revenue issues in the greater Raleigh, North Carolina area.

Comments (3)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kelly, I send my information to my CPA, and she knows what to do.   Thanks for your informational post.

Jun 03, 2021 01:27 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Jun 04, 2021 02:30 AM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Jun 20, 2021 07:07 AM