client keeps asking about 100% meals deduction — it's been 50% again since 2023 right?
every tax season i have this conversation 5 times. client read something on LinkedIn saying meals are 100% deductible.
actual rule post-TCJA:
- 100% meals (restaurant) was temporary — Consolidated Appropriations Act 2021, ONLY for 2021 and 2022
- 2023 onwards back to 50%
- OBBBA didn't change this
anyone know a good 1-paragraph explanation i can copy-paste to clients? i'm tired of re-explaining.
3 replies
template:
"The 100% restaurant meal deduction was a temporary COVID-era provision under the Consolidated Appropriations Act of 2021, applicable only to tax years 2021 and 2022. Starting in 2023, meal deductions reverted to 50% under IRC §274(n), which is the standing rule. OBBBA (2025) did not revive the 100% deduction. Expect 50% for the foreseeable future."
feel free to steal verbatim.
saved, thank you. pinning this to my client comms template folder.
UK has similar client confusion around "staff entertainment" (deductible up to £150/head/year) vs "client entertainment" (not deductible at all). clients always want to reclassify the latter as the former.
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