If you search the proposed new tax bill 6,000 pages or so, you won’t find the exact words for 3 Martini Lunch, it’s a metaphor:) Since 1994, a business meal deduction has been limited to a 50% write-off instead of a full write off like other business expenses (80% in 1987). The new tax bill proposes increasing the deduction to 100% as it appears their thought process is the increase meal expense deduction will increase spending at restaurants that are hurting from the COVID-19 Pandemic. The proposed bill is currently running into some hiccups with it being signed by the President.
Enjoy your Holiday’s and get yourself 3 Martinis!