The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020.
The legislation adds a few new federal income tax breaks for businesses and extends a bevy of other business breaks that were set to expire at the end of 2020.
This article covers the most important things that small-business owners need to know. Note that you find the tax changes explained here in the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA) and the COVID-Related Tax Relief Act of 2020 (COVIDTRA). The CAA included both acts inside its 5,593 pages.
100 Percent Deductions for Business Meals Provided by Restaurants
We mentioned this last month but have it again here because we like it.
Under the new law, you may deduct 100 percent of the cost of business-related food and beverages provided by restaurants in 2021 and 2022.
The “provided by” language ensures that this break applies equally to take-out and sit-down meals. In the past, you could generally deduct only 50 percent of the cost of business meals. The temporary 100 percent deduction rule is intended to help restaurants survive COVID-19 ... Log in to view full article.