February 9, 2021
If you’re self employed, you know you can deduct meals with clients. But the deduction used to be for 50% of the cost of the meal.
With the new stimulus packages, the meals deduction will be now be 100% for 2021 and 2022.
The same rules apply:
Non-extravagant meal with a client.
Keep track of the date, restaurant, amount spent, name of client, and business purpose. (My tip: snap a pic of the receipt and make a note on the pic with those details. Save it in a tax folder in case of an audit)
So with the new legislation, we can deduct 100% of the cost of the meal from a restaurant. Doesn’t need to be dine in.. can also be takeout.
Disclaimer: For informational purposes only. Not Tax or Legal advice.