Meals and Entertainment -Snapshot- (2021-2022)

You probably miss getting together with your prospects, clients, and staff for parties and company meals? 

Prepare to begin the process all over again. COVID-19 will be a distant memory before we know it. It could happen within the next few months. 

Check out the below to see what you can do now, as the law stands, in 2021 and 2022:

Deductible for Tax Years 2021-2022  at 0%

• Clients and prospects entertainment like sporting events - baseball and football games
  
• Party for Client at Year-End - classified as  entertainment
  
• Treating your best client, to golfing, cinema, or football game.
  

Deductible for Tax Years 2021-2022  at 50%

• Employee meals are prepared by an in-house cafeteria for the convenience of the employer.
• Meals prepared in your hotel room kitchen while away from home for an extended period of time

Deductible for Tax Years 2021-2022  at 100%

• After your non-deductible game of golf, have a meal with a potential client at the country club. 
• All employees participate in a fun team-building activity. 
• At a marketing presentation, meals prepared on-site for the general public.
• Employees and their families are invited to a year-end celebration. 
• Employees and their spouses are invited to a golf outing. 
• While on overnight business trip, a meal was eaten in a restaurant. 
• Clients and prospects are invited to a restaurant meal. 
• At a chamber of commerce meeting held in a hotel meeting room, a meal was served. 
• Employee meals ordered from a restaurant for a mandatory company meeting

Please contact us, if you have any questions about these percentages.