The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual business meal deduction of 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So,
One of the tax breaks that President Trump has proposed to help restaurants is an increase in the amount allowed for business meal and entertainment deductions.
Business meal and travel expenses are still deductible if they qualify as legitimate business expenses, though the deduction for meal expenses continues to be limited to 50% in most cases.
The tax rules related to meals and entertainment have changed, and left some uncertainty in the gap between the old law and the new. Before the Tax Cuts and Jobs Act, the deduction allowed for entertainment expenses was limited to 50 percent of the amount otherwise deductible. Under the TCJA, the deduction for entertainment is completely repealed.