Normally, only 50% of the expenses for meals are deductible for taxes, but between January 1, 2021 and December 31, 2022 that limitation has been lifted: Meals from restaurants are now 100% deductible. The IRS recently released guidance that explains this deduction. The guidance defines restaurants as businesses or services that prepare food and beverages for immediate consumption, regardless of whether the purchases are consumed on premises or not. This definition means that purchases from businesses that primarily sell pre-packaged foods, such as grocery stores, convenience stores, liquor stores, vending machines, and kiosks, will remain at the 50% deductible limit.
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