Best Business Consultants in Harrisonburg, VA

Did you know that effective for 2021 and 2022 only, a taxpayer can deduct 100% of the cost of a business meal that is purchased in a restaurant. The usual deduction for 50% of the cost of business meals (100% for restaurant meals in 2021 and 2022) is allowable only if the expense is not lavish or extravagant under the circumstances, and that the taxpayer, or an employee of the taxpayer, must be present at the furnishing of the meal. The food and beverages must be provided to a business contact, such as a current or potential business customer, client, consultant, or similar business contact. A potential business contact means a person with whom the taxpayer could reasonably expect to engage or deal in the active conduct of the taxpayer’s trade or business, such as the taxpayer’s customer, client, supplier, employee, agent, partner, or professional adviser, whether established or prospective. The regulations include employees as a type of business associate, making the standard applicable to employer-provided meals as well as to situations in which a taxpayer provides meals to both employees and non-employee business associates at the same event...