Helicopter View of Meals and Entertainment (2021-2022)

I thought I’d share some good news as it seemingly “feels” like we might be seeing some improvements of our current COVID-19 protocols that would allow us to venture toward our more “normal” business activities that will now be more conducive to connecting with our Customers again.

When you know the rules, Business Entertainment and “Employee Entertainment” costs are allowed to be tax-deductible.

The IRS says that the following types of entertainment qualify for the 100 percent employee entertainment tax deduction.

To help you get ready, check the table below for what you can do in 2021 and 2022 as the law stands now:

 Amount Deductible for Tax Years 2021-2022
Description100%50%Zero%
Restaurant meals with clients and prospects
Entertainment such as baseball and football games with clients and prospects
Employee meals for convenience of employer, served by in-house cafeteria
Employee meals for required business meeting, purchased from a restaurant
Meal served at chamber of commerce meeting held in a hotel meeting room
Meal consumed in a fancy restaurant while in overnight business travel status
Meals cooked by you in your hotel room kitchen while traveling away from home overnight
Year-end party for employees and spouses
Golf outing for employees and spouses
Year-end party for customers classified as entertainment
Meals made on premises for general public at marketing presentation
Team-building recreational event for all employees
Golf, Theater, or Football Game with your best customer
Meal with a prospective customer at the country club following your non-deductible round of golf

Takeaways

The table above gives you a usable “Helicopter View” of how the rules set various business meals and entertainment tax deductions for 2021 and 2022.

The opportunities for employee entertainment are excellent. If you want to retain more of what you make and multiply your net worth while remaining tax compliant, contact us at Morris + D’Angelo. This is our Expertise!

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo


Daniel Morris
Daniel frequently provides Media Content via Workshops, Podcasts, and Printed Articles on topics like Bitcoin and Cryptocurrency, Wealth Preservation and Planning, Global Banking, and many other high-level financial topics that serve and demonstrate the Value of our Global Network that should be of interest to those who need Private High-Wealth Services.

If you would like Daniel to speak to you or your Professional Group and bring clarity about the new frontier of the new business tax law changes. Please contact us.

Morris+D’Angelo is the industry leader for many High-Wealth Customers and Organizations.

Daniel Morris, Managing Director, Chief Dragon Slayer707 SW Washington St., Suite 1100
Portland, Oregon, 97205

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Daniel Morris, Dan Morris, CPA, Portland Oregon, Dragon Slayer


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