It’s hard to keep up with all the tax code changes that have come about due to COVID-19, and of course the change in the White House will bring even more tax code tweaks. A lot of what’s been in the news and talked about are PPP loans, changes to payroll tax rules, deferrals and ways to not pay in or to get more back. All complex issues. The smaller, simpler things are not as newsworthy perhaps, or not seen as economic “life support” items, which has been the medias focus (and rightly so) for many businesses and individuals who are suffering deeply.
With all this discussion, one tax change seems to have fallen through the cracks and people are often surprised when told about it, so we are making it today’s focus. Normally, only 50% of what is spent on business meals can be deducted, but for 2021, business meals in a restaurant are 100% deductible!
People in sales especially could net a very large deduction from this change, but due to pandemic related restrictions, many have changed the habit of “Let’s do lunch” to Zoom meetings, take-out and other means of breaking bread with prospects. This year the IRS “special” is to help restaurants and servers, bartenders and the like attract those clients back inside, as the vaccines and social distancing rules have reduced the risks. Put it back in your thoughts and hopefully the thought of the IRS buying 100 percent of your dinner and drinks will get you back out supporting those business owners!!