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Helicopter View of 2023 Meals and Entertainment
As you may already know, there have been some major changes to the business meal deduction for 2023 and beyond. The deduction for business meals has been reduced to 50 percent, a significant change from the previous 100 percent deduction for business meals in and from restaurants, which was applicable only for the years 2021 and 2022.
To help you better understand the current situation, see the table below:
| Amount Deductible for Tax Year 2023 and Beyond | ||
Description | 100% | 50% | Zero |
Restaurant meals with clients and prospects |
| X |
|
Entertainment such as baseball and football games with clients and prospects |
|
| X |
Employee meals for convenience of employer, served by in-house cafeteria |
| X |
|
Employee meals for required business meeting, purchased from a restaurant |
| X |
|
Meal served at chamber of commerce meeting held in a hotel meeting room |
| X |
|
Meal consumed in a fancy restaurant while in overnight business travel status |
| X |
|
Meals cooked by you in your hotel room kitchen while traveling away from home overnight |
| X |
|
Year-end party for employees and spouses | X |
|
|
Golf outing for employees and spouses | X |
|
|
Year-end party for customers |
|
| X |
Meals made on premises for general public at marketing presentation | X |
|
|
Team-building recreational event for all employees | X |
|
|
Golf or theater outing or football game with your best customer |
|
| X |
Meal with a prospective customer at a country club following your non-deductible round of golf |
| X |
|
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