Helicopter View of 2023 Meals and EntertainmentTax Planning
The article discusses changes to the business meal deduction for the year 2023 and beyond.
As of now, the deduction for business meals is only 50 percent—a significant change from the previous 100 percent deduction for business meals in and from restaurants, which was applicable only for the years 2021 and 2022.
Additionally, many business-generating entertainment deductions were eliminated by the Tax Cuts and Jobs Act, such as the costs associated with playing golf with customers and prospects.
To help you better understand the current situation, see the table below outlining what is now permissible under the law for 2023 and beyond.
The table in this article covers a range of scenarios related to business meals and entertainment, including
- employee meals served by an in-house cafeteria,
- meals purchased from a restaurant for required business meetings,
- restaurant meals with clients and prospects, and
- meals consumed while in overnight business travel status.
The table also shows non-deductible expenses, such as meals with prospective customers following non-deductible rounds of golf.
Additionally, the table shows some 100 percent deductible entertainment expenses, such as team-building recreational events for all employees and non-deductible outings with best customers, including golf, theater, or football games.
With its helicopter view, the table is a valuable summary resource. Make sure to check it out periodically.