Recent tax law changes provide temporary relief from the 50% haircut that normally applies to the business meal deductions. The taxpayer or an employee must be at the meal. The easing applies only to:
- Food and beverages purchased at a restaurant for takeout or dining in the establishment
- Client meals with the taxpayer or employee present, and travel-related meals.
What does not qualify for the 100%deduction:
- Prepackaged food or beverages bought at a store or similar facility.
- The cost of meals at an employer-operated facility.