New law doubles business meal deductions and makes favorable PPP loan changes

新冠肺炎救助法案, 于12月27日签署成为法律, 2020, provides a further response from the federal government to the pandemic. 它还包含了对企业的大量税收减免. Here are some highlights of the Consolidated Appropriations Act of 2021 (创新艺人经纪公司), 它还包括其他法律.

商务餐扣款增加 

The new law includes a provision that removes the 50% limit on deducting business meals provided by restaurants and makes those meals fully deductible.

作为背景, ordinary and necessary food and beverage expenses that are incurred while operating your business are generally deductible. However, for 2020 and earlier years, the deduction is limited to 50% of the allowable expenses.

The new legislation adds an exception to the 50% limit for expenses of food or beverages provided by a restaurant. This rule applies to expenses paid or incurred in calendar years 2021 and 2022.

The use of the word “by” (rather than “in”) a restaurant clarifies that the new tax break isn’t limited to meals eaten on a restaurant’s premises. Takeout and delivery meals from a restaurant are also 100% deductible.

注意: Other than lifting the 50% limit for restaurant meals, the legislation doesn’t change the rules for business meal deductions. All the other existing requirements continue to apply when you dine with current or prospective customers, 客户, 供应商, 员工, partners and professional advisors with whom you deal with (or could engage with) in your business.

因此,可扣除:

  • The food and beverages can’t be lavish or extravagant under the circumstances, and
  • You or one of your 员工 must be present when the food or beverages are served.

If food or beverages are provided at an entertainment activity (such as a sporting event or theater performance), either they must be purchased separately from the entertainment or their cost must be stated on a separate bill, 发票或收据. This is required because the entertainment, unlike the food and beverages, is nondeductible.

购买力平价的贷款

The new law authorizes more money towards the Paycheck Protection Program (PPP) and extends it to March 31, 2021. There are a couple of tax implications for employers that received 购买力平价的贷款:

  1. 澄清的税收后果 购买力平价贷款宽恕. The law clarifies that the non-taxable treatment of 购买力平价贷款宽恕 that was provided by the 2020 CARES Act also applies to certain other forgiven obligations. 也, 法律明确规定纳税人, 谁的PPP贷款或其他义务被免除, are allowed deductions for otherwise deductible expenses paid with the proceeds. 除了, the tax basis and other attributes of the borrower’s assets won’t be reduced as a result of the forgiveness.
  2. Waiver of information reporting for 购买力平价贷款宽恕. 在创新艺人经纪公司, the IRS is allowed to waive information reporting requirements for any amount excluded from income under the exclusion-from-income rule for forgiveness of 购买力平价的贷款 or other specified obligations. (The IRS had already waived information returns and payee statements for loans that were guaranteed by the Small Business Administration).

These are just a couple of the provisions in the new law that are favorable to businesses. The 创新艺人经纪公司 also provides extensions and modifications to earlier payroll tax relief, 允许更改员工福利计划, 包括救灾和更多. Contact us if you have questions about your situation.

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