qbteachmt
Level 15

The IRS knows:

https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-tax-relief-for-deductions-for-food-or-...

https://www.irs.gov/pub/irs-drop/n-21-25.pdf

https://www.irs.gov/publications/p535

 

"The other $20k is just the Sole-proprietor eating."

Wow. Hope he/she feels better. "There is an additional caveat that if a meal is considered “lavish and extravagant” under the circumstances, the extra portion attributable to extravagance is not deductible at all."

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/business-meals-that-are-fully-deductible...

"$30k in meal expenses according to the software"

According to Your Data Entries. Don't start blaming the Software. You don't go by the Software; you only enter what applies. Right now, that $20k for the owner is $385 a week for food, for that one person. Time for a reality check on just what Business Meals really are, much less how they get treated for the different Years for tax purposes.

Are you using the googles:

business meals tax reporting

Such as:

https://www.journalofaccountancy.com/news/2020/oct/irs-rules-business-meals-entertainment.html

 

https://home.kpmg/us/en/home/insights/2021/01/tnf-kpmg-report-full-deduction-for-business-meals-prov...

 

*******************************
Don't yell at us; we're volunteers