business meal deduction changes for 2023 and beyond

Overview of 2023 Business Meals and Entertainment

We want to provide you with the latest updates on the business meal deduction for 2023 and beyond.

As you may already know, there have been some significant changes to business meal deductions for 2023 and beyond. The deduction for business meals has been reduced to 50 percent, a significant change from the previous 100 percent deduction for business meals in and from restaurants, which was applicable only for the years 2021 and 2022.

The table below contains different meal and entertainment situations that are tax deductible. There are different business meal deductions for entertaining clients and meals for employees. To help you better understand the current situation, see the table below:

  Amount Deductible for Tax Year 2023 and Beyond
Description 100% 50% Zero
Restaurant meals with clients and prospects X
Entertainment such as baseball and football games with clients and prospects X
Employee meals for convenience of employer, served by in-house cafeteria X
Employee meals for required business meeting, purchased from a restaurant X
Meal served at chamber of commerce meeting held in a hotel meeting room X
Meal consumed in a fancy restaurant while in overnight business travel status X
Meals cooked by you in your hotel room kitchen while traveling away from home overnight X
Year-end party for employees and spouses X
Golf outing for employees and spouses X
Year-end party for customers X
Meals made on premises for general public at marketing presentation X
Team-building recreational event for all employees X
Golf or theater outing or football game with your best customer X
Meal with a prospective customer at a country club following your non-deductible round of golf X

The table above provides a valuable summary resource for you. Please take some time to review it periodically. If you have any questions or concerns about business meal deductions, please do not hesitate to contact us.