2022 meals and entertainment deduction
As part of the Consolidated Appropriations Act signed into law on December 27, 2020, the deductibility of meals changed. Food and beverages will be 100% deductible if purchased from a restaurant in 2021 and 2022.
Here are some examples:
| Type of Expense | Deduction |
|---|---|
| Entertaining clients (sport events, club membership, golf games, etc.) | 0% deductible |
| Ministry meals with member to conduct ministry or church business | 50% deductible (100% if purchased from a restaurant) |
| Office snacks and meals to conduct ministry or church business | 50% deductible (100% if purchased from a restaurant) |
| Professional & Meals allowance (included in taxable compensation) | 0% deductible |
| Entertainment allowance (included in taxable compensation) | 0% deductible |
In summary, if you’re dining out with a member at a restaurant, you can consider that meal 100% tax-deductible. However, if you’re entertaining that same member in-office with snacks purchased at a grocery store, the meal is 50% deductible.
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Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421.0101
Fax: (888) 876.5101
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com