WASHINGTON (WJW) — Businesses can save some dough on their food and drink purchases through the end of next year.
The Treasury Department and the Internal Revenue Service announced today they added a temporary exception allowing businesses to claim a 100% deduction for food or beverages from restaurants, according to a release.
Beginning January 1, 2021, through December 31, 2022, businesses are eligible for the deduction as long as the owner or an employee is there when the food or beverages are provided and the expense is not extravagant under the circumstances, the release says.
Where can businesses get food and drinks then be eligible to claim their expenses?
If it’s a restaurant that prepares and sells food or beverages for consumption there or to-go, then it counts.
But it’s not for businesses that primarily sell pre-packaged goods not for immediate consumption like grocery stores and convenience stores.
Click here for more information on how businesses can seek coronavirus-related tax relief.