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Now that President Trump signed the new Covid relief bill during the holiday break, it’s not surprising to see that everyone is focused on the provisions for the Paycheck Protection Program, unemployment benefits and stimulus checks. However, it’s important to take notice of a hidden gem in the 5,500-page legislation that will undoubtedly help every small business owner in America, no matter what their situation may be.
That little gem is the dining write-off, otherwise known as the business-meals deduction.
Yes, Congress had countless problems to solve due to the pandemic, but one that was obvious to everyone was the severely impacted, if not decimated, restaurant industry. So politicians, in their infinite wisdom, decided that the best way to get more business for restaurants was to dish out a bigger incentive for business owners to dine in or order out. Or in other words, a tax deduction — and a whopper at that.
On the face of it, the provision sounds pretty straightforward, but there’s actually a lot to chew on….
Related: New Stimulus Bill