Anytime I’m about to confirm a flight, a little box appears asking if I want to purchase travel insurance. Europ Assistance is a travel insurance company catered mainly to European travellers as well as anyone travelling to the Schengen Area. On-site meals for employees – such as catered lunches, office meals and snacks, and meals for company meetings – are still deductible but only 50% instead of 100%. Your holiday parties or company events for your employees are still 100% deductible, but not if the event is primarily for clients (even if some of your employees attend).
Meals are still deductible to some extent, but this depends on the nature of the meal. As a general rule, meals and lodgings are deductible as medical expenses only if incurred in a hospital or similar institution. To qualify, such lodgings must be “primarily for and essential to medical care provided by a physician” in a hospital or a similar facility, such as the Mayo Clinic in Rochester, Minnesota, or the Hospital for Special Surgery in New York City. Formerly, that restriction eliminated any deduction for the cost of a stay at a hotel while away from home to obtain outpatient treatment at a hospital – for instance, chemotherapy treatment for cancer patients.
There are several ways that your business can deduct 100% of the cost of meals, other food and beverages, and even entertainment. Entertainment deductions that a business can claim. Issued in October of just last year, the IRS’ final regulations which clarified meal-related deductions under the Tax Cut and Jobs Act could be a good place to look.
Gone are the good old days when you could treat your clients to backstage passes or courtside seats and write off 50% of the expense from your taxes. It includes a good promotion that they send out weekly to their email subscribers. Primary coverage is more expensive but pays out before other medical coverage you have. An addendum was issued modifying paragraphs 23 to 30 of determination TD 2017/19 setting out the new reasonable amounts, and consolidated into TD 2017/19 as linked above.
But in Hunter New England, few local government areas had a double-dose rate above 70 per cent: Cessnock and Muswellbrook have some of the lowest rates with about 58 per cent and 56 per cent of their residents fully vaccinated. If you’re a local business owner, this new tax provision could be a way for you to save money on business-related meals and help support local Portland restaurants. A business associate means a person with whom the taxpayer could reasonably expect to engage or deal with in the active conduct of the taxpayer’s business such as a customer, client, supplier, employee, agent, partner or professional advisor.
Food or beverages means all food and beverage items, regardless of whether they are characterized as meals, snacks or other types of food and beverages. Now, the CAA now allows taxpayers to deduct 100% of the cost of business-related food and beverage expenses incurred at restaurants in 2021 and 2022, subject to the considerations identified in preexisting IRS regulations. Previously, deductions for business meals at restaurants were limited to only 50% of the cost.
While some critics described the tax break as a benefit for wealthy business executives to enjoy “three martini lunches”, proponents said it can help struggling restaurants. Remember to stay on top of all of your business expenses throughout the year so tax season doesn’t have to be so painful for you and your business. Make sure you understand how these changes will impact your business. And don’t worry, we’re here to help you make sense of it all.
While short of outright bans, the new rules make trips harder to plan and more expensive if additional testing is required. Special rules apply to medical-care deductions for lodging expenses while away from home. No worries – we’ve put together a handy cheat sheet for you below that breaks down current meals and entertainment deductions compared to what was allowed in 2017 and prior. For example, if you host a party for current or prospective clients, you couldn’t deduct the expenses related to booking the venue, but you could deduct 50% of the appetizers and bar expenses – you’d just need to ask for a separate bill with food and beverage costs only.
You can also still deduct 50% of client meals but they must be purchased separately from any entertainment expenses. As for travel meals for your employees, those expenses are still 50% deductible, just like before. Still have questions? You can refer to the Tax Reform page of the IRS website, or feel free to reach out to us. Although you still need to submit supporting documentation in most cases, the small cost of buying a policy is worth the potential payout.