Answers · Deductions, assets & depreciation
Can a Business Deduct Meals?
Qualifying business meals are generally 50% deductible unless an exception applies.
How it works
The rule, and what it turns on.
Business connection, presence and documentation requirements apply; entertainment is generally nondeductible.
Example
$150 qualifying vendor meal generally yields $75 deduction.
Common mistakes
What we see go wrong, and what we do instead.
- Deducting entertainment.
- No attendee/purpose note.
A better approach
- Use separate GL categories for 50%, 100% and nondeductible items.
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.
Have this question about your own books?
Thirty minutes with someone who does this every day, and you will know where you stand. No obligation.