Business Meal Deductions for 2021 and 2022
Prior to the enactment of the CAA, the U.S. Tax Code only allowed a business to deduct 50% of its expenses for meals, whether or not they were provided by a restaurant. The 50% deduction still applies for business meals that are not provded by a restaurant. After 2022 the restaurant deduction will return to 50% of the cost of business meals. Meals while traveling count for this tax deduction as well.
Under the CAA, businesses can deduct 100% of business meals provide by restaurants, including meals taken during business travel and meals offered to employees for the convenience of the employer. Unfortunately, the Internal Revenue Code does not define the term "restaurant", but many experts believe the deduction would apply to food delivered by restaurants.