top of page
  • Halverson & Company

The Consolidated Appropriations Act - 100% Meals Deductible for Federal

The Consolidated Appropriations Act signed into law by President Trump on December 27, 2020 provides for a 100% deduction related to meals

  • Applies to meals paid or incurred in calendar years 2021 and 2022

  • Meals include food or beverages provided by a restaurant (does not have to be in a restaurant)

  • Other Considerations

    • The food and beverages can't be lavish or extravagant under the circumstances.

    • You or one of your employees must be present when the food or beverages are served.

    • The food or beverages must be provided to you or to a “business associate.” This is defined as a current or prospective customer, client, supplier, employee, agent, partner, or professional adviser with whom you could reasonably expect to engage or deal in your business.

    • If food or beverages are provided at an entertainment activity, either they must be purchased separately from the entertainment or their cost must be stated on a separate bill, invoice, or receipt. This is required because the entertainment, unlike the food and beverages, is nondeductible.

  • Most states do not conform



bottom of page