According to guidance from the IRS issued April, 8, 2021 (IR-2021-79), the Treasury Department, under the Disaster Relief Act of 2020, has created a temporary exception to the 50% limit on deducting food and beverages as a business deduction. For the calendar years of 2021 and 2022, business can deduct 100% of their food and beverage expenses at restaurants. For more information see here: https://www.irs.gov/pub/irs-drop/n-21-25.pdf
Prior to the Disaster Relief Act, the IRS (under the Tax Cuts and Jobs Act of 2017) had revised the regulations regarding entertainment to disallow deductions for certain meal and entertainment expenditures. The tax code still disallows deductions for expenses related to entertainment, amusement, or recreation. Some examples of excluded entertainment are night clubs, sporting events, fishing trips, and theater - unless directly related to the taxpayer’s business. See more info here: https://www.irs.gov/pub/irs-drop/n-18-76.pdf
So, while certain meals at restaurants are temporarily deductible at 100%, entertainment is still not deductible at all.
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