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IRS ISSUES GUIDANCE ON 100% BUSINESS DEDUCTIONS FOR F&B EXPENSES   

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Golf Course Owners and Operators, On April 7,... Ronnie Miles

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Golf Course Owners and Operators,

On April 7, 2021, the IRS and Treasury Department issued guidance allowing a 100% business deduction for food or beverages purchased from restaurants, from January 1, 2021, to December 31, 2022. The IRS guidance defines the term "restaurant" means a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business' premises. The guidance provides that no deduction is allowed 
for the expense of any food or beverage unless such expense is not lavish or extravagant under the circumstances and the taxpayer or an employee of the taxpayer is present at the furnishing of such food or beverages. 

This expands the deduction limit from the previous 50% deduction to 100% through 31 December 2022. The regulation still prohibits business deductions for entertainment expenses.

Email your questions or comments to rmiles@ngcoa.org.

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Ronnie Miles
Director of Advocacy
NGCOA
Daniel Island SC
[843-471-2714]
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