Meals are deductible at 50% when business is conducted. Entertainment is not deductible at all. The line between them confuses everyone.
Deductible at 50%
- Meals with clients, prospects, partners or contractors where business is discussed.
- Meals while traveling overnight for business.
- Meals at a business conference or seminar.
Not deductible
- Entertainment: sporting events, concerts, golf, even with a client.
- Your own lunch on a normal workday.
- Lavish or extravagant meals (a judgment call, rarely enforced).
Deductible at 100%
- Meals provided for the convenience of the employer at an office (limited after 2025; check current rules).
- Company parties and events for all employees.
- Meals sold to customers (cost of goods).
Records
Who, where, when, business purpose, amount. Upload the receipt to ProfitBooks and add the names in the note; the 50% limit is applied at tax time by your preparer.