Q: What are tax deductible business meals?
A: Tax deductible business meals are meals that are primarily for business purposes and are ordinary and necessary expenses of running a business.
Q: What percentage of business meal expenses are tax deductible?
A: Generally, you can deduct 50% of your business meal expenses.
Q: Are there any restrictions on the type of business meals that are tax deductible?
A: Yes, there are certain restrictions on the types of business meals that are tax deductible. For example, lavish or extravagant meals may not be deductible.
Q: If I am a realtor and I grab a meal in between showings or I am a landscaper who goes and grabs lunch from a restaurant, does that count as a tax deductible expense?
A: Typically, no. The IRS would not consider that primarily for business purposes. If you met with a potential client over food or coffee, that would be considered tax deductible. Or if you are working out of town, that would be considered tax deductible.
Q: How do I document my business meal expenses for tax purposes?
A: You should keep accurate and detailed records of your business meal expenses, including the date, time, place, amount, and business purpose of each expense.
Q: What if I take my client golfing. Can that be considered a business expense?
A: Unfortunately, no. The IRS removed that and similar forms (i.e. tickets, outings, and activities) of entertainment as a deductible business expense.
For more information on tax deductible business meals, please see the following links on the IRS website:
Publication 463, Travel, Gift, and Car Expenses: https://www.irs.gov/publications/p463
Business Meals: https://www.irs.gov/businesses/small-businesses-self-employed/business-meals
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