- A “restaurant” is a business that prepares and sells food/beverages for immediate consumption which may or may not occur on the business’s premises.
- A business that sells prepackaged food or beverages, such as grocery stores, drug stores, convenience stores, vending machines and kiosks are not restaurants. For any of these types of purchases the meals deduction will be limited to 50%.
- An eating facility located on the employer’s premises like a cafeteria does not qualify as a “restaurant”.
The 100% meals deduction is available through December 31, 2022. Keep in mind, the IRS still requires that for a business expense to be deductible there must be a business purpose.
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