100% meals deduction
Most of the 2021 tax returns in process now are among the first to incorporate a favorable new rule regarding deductibility of certain meals. For expenses incurred in 2021 and 2022, most food and beverages provided by a restaurant generally are 100% deductible (up from the previously-applicable cap of 50%), including overtime meals provided to employees. There are exceptions, including restrictions regarding what constitutes a restaurant for purposes of this rule, and more details are found in Drew Cheney’s April 2021 article.