Answers · Individual tax · Form 1040
Business Meals Deduction Explained
Qualifying business meals are generally 50% deductible unless a statutory exception applies.
How it works
The rule, and what it turns on.
The taxpayer/employee generally must be present, the meal cannot be lavish or extravagant, and the business purpose should be documented. Entertainment is generally nondeductible.
Example
$200 qualifying client meal generally produces a $100 deduction.
Common mistakes
What we see go wrong, and what we do instead.
- Deducting entertainment tickets.
- No business-purpose/attendee documentation.
A better approach
- Use separate accounts for meals, entertainment and employee events.
Authority
Where this comes from, so you can check it.
IRC §§162 and 274(k), (n); IRS Publication 463.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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