Prior to Nov,1, 2003 the per diem rate for meals was 65% of $40 per day. After Nov,1, 2003 the rate increased to 70% of $41 per day.
The deductible portion of food or beverage expenses gradually increases for individuals during, or incident to, the period of duty away from home and subject to the hours of service limitations of the Department of Transportation ( § 274(n)(3)).
For taxable years beginning after 1997 the deductible percentages for such expense are:
| For Taxable Years Beginning In: | Applicable Percentage: |
| 1998 or 1999 | 55% |
| 2000 or 2001 | 60% |
| 2002 or 2003 | 65% |
| 2004 or 2005 | 70% |
| 2006 or 2007 | 75% |
| 2008 and thereafter | 80% |
Applicable Percentage For The Deductible Portion Of Medical Premiums:
| For Taxable Years Beginning In: | Applicable Percentage: |
| 2001 | 60% |
| 2002 | 70% |
| 2003 | 100% |