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://ledgergurus.com/meals-and-entertainment-deductions-50-vs-100/