In order to write a meal off as a tax deduction, it must be for business purposes, such as a meeting with a co-worker or a consultant or a lunch with a client. Late night meal deliveries when you’re off the clock don’t count!
To be deductible, a business meal expense must meet specific IRS criteria:
- Business Discussion: The primary purpose of the meal must be to conduct business. This means there should be substantial business discussion during the meal.
- Directly Related to Business: The meal should directly relate to your business or profession. For example, a meal with a client, consultant to discuss a potential deal.
- You or Your Employee Must Be Present: You or your employee must be present at the meal.
- Reasonable Cost: The cost of the meal should be reasonable. Excessive or extravagant expenses are not deductible.
Meal Deduction
A portion of the costs of meals can be deducted, but there is a 50% deduction limit on meals.
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