Things are changing in the tax world.  Some good and some bad.  One of the good things is the announcement that business meals from restaurants are now 100% tax deductible for the 2021 and 2022 tax years.

You may not realize it, but when you have a meal expense, whether it is an actual expense or a per diem expense, only 50% has traditionally been deductible to you.  You give your accountant the amount you want to deduct for that business lunch, and the computer program that calculated your taxes automatically cuts the amount you submitted in half. 

In order to help restaurants recover from COVID-19, the new law lets people get a 100% deduction for meal expenses.  This is just one of the many, many changes we will be going over in the upcoming Tax Summit on July 16.  There are actually a number of “rules” associated with the 100% deduction.

Of course, the meals have to be “business” meals.  When you travel away from the office or home for business reasons, the meals are all deductible.  Meals where you meet with a business associate, client, employee, fellow manager of your LLC or officer of your corporation, and so on are all deductible. 

What about the “board meeting” for your little company?  I wouldn’t abuse the deduction, but once a quarter, or maybe even monthly, having a nice dinner with your fellow manager or board member, aka spouse, would be reasonable.  Maybe disallowed in the audit, but certainly not illegal.

By the way, they just put an extra $95 billion into the IRS to increase enforcement, and Ben says they are hiring new IRS agents like there is no tomorrow.  In the Tax Summit we will go over how to cut your audit risk by over 90%. Ben is a former special auditor/agent for the IRS, so he knows the IRS audit game.

To deduct 100% of your meal expense, the meal has to have come from a restaurant.  That’s a place that prepares food for immediate consumption.  McDonalds through Ruth Chris.

The Tax Summit is virtual, but we are strictly limiting the number of participants to how many we can see on our 80 inch TV.  We want interaction with everybody.  Ask questions.  Participate.  The cost is $999.00 for the public, but you’re my student.  Use the coupon code “SUBSCRIBER” when you register at https://legalees.com/product/tax-summit/ and you’ll get the best deal possible (Only $399). 

I would be shocked if you didn’t make back ten times your tuition in tax savings this year.  You’ll actually put more money in your pocket.   If you can’t see how you’ll make more money this year, I’ll give your tuition back.  What’s to lose—other than your opportunity to attend—if you don’t register now?  

Besides, we will have fun.  If you have never interacted with Ben and me, you’ll be in for a treat.  See you at the Tax Summit, and eat lots of business meals this year.