July 2026
By Larissa Zeiler
CPA, Leffel, Otis & Warwick, P.S.
Gearing up for harvest lunches? Get the scoop on changes to the ‘board for labor’ deduction.
If you are a farmer living on the farm and have a c-corporation, you likely have taken advantage of the “board for labor” deduction, which allows a deduction for meals furnished by the employer on the farm premises. With the One Big Beautiful Bill that passed in July 2025, employer-provided meal deduction rules have changed significantly. Most expenses for meals provided on-site for the “convenience of the employer” are no longer deductible (reduced from the previous 50% deduction). This means that your farm corporation won’t receive the 50% tax deduction for groceries purchased after January 1, 2026. However, despite the deduction being eliminated, we encourage you to continue to pay for groceries directly out of the farm c-corporation, or if paid personally, have the c-corporation reimburse the owner periodically for these expenses. A non-deductible meals expense paid by a c-corporation is preferred instead of paying it personally with after-tax dollars.