Posted On Nov 06, 2022,

Can you believe we are already in April? Time seems to have lost track of itself- at least for me- and through this time, the wind has brought many changes. Which brings me to my topic for this post-What can and can't be deducted this year for businesses when tax time comes. Just be forewarned that this post could very well end up being Part 1, 2, 3, etc. Too early to tell. So lets get down to it then shall we?

Every business whether just starting out or well established are always looking for those deductions- you know the ones I mean... the ones that can lower the businesses taxable income. And we ALL know what that means- Less taxable income = Less taxes we have to pay. And unless you really do your homework, or have a friend that works for the IRS to seek advice from; there's a REALLY good chance we are missing crucial business deductions; resulting in the IRS getting more than they really need. But, it's not like they are going to send a check back to you saying "Here ya go, you overpaid X amount so here's a check." Why? Well because the IRS is quick to point out/collect money it is owed, but also just as quick to overlook when too much money is sent to them. That's neither here nor there, sorry, let me get back on track... Ok so here are some of the entertainment expenses & meal deductions that are either no longer allowed or new ones to look for-

Meals & Entertainment- So as you know this whole area pulled a switcheroo. It used to be a business could deduct 50% of its food & beverage costs if it met certain criteria-

1. The taxpayer applying the deduction & their employee must be present for the meal  

2. The meal cannot be too extravagant or lavish for a work lunch. 

But now... for tax year 2022(not sure if it will go beyond this year) all meals purchased from a restaurant for you and your employees is 100% deductible - with the same rules as above. And it has to be from a food establishment that prepares the food. It can't be food purchased from your local grocery store prepackaged. But with this, the entertainment portion of this deduction has been completely disallowed. So no more taking your clients or prospect clients to a baseball or football game and writing half of it off. BUT.... If you take your client to a game and purchase the food separately from the tickets, then the food portion can still be deducted as long as it is listed separately on the bill or listed on its own bill. So really it's only half a loss here, if one can remember to keep food purchases separate if/ when they take that potential new client to see their "dream team" play. Well that's all for now, but don't worry, I'll be back with more ramblings for anyone willing to read.

Original Article : What Meal Expenses Can I Deduct in 2022