What counts as a business meal?
A meal is deductible when it's directly related to your business. Common examples:
- Lunch with a client to discuss a project
- Dinner with a potential business partner
- Meals during business travel
- Team meals during a working meeting
- Food at a business conference or seminar
The meal doesn't have to result in a deal. It just needs a legitimate business purpose.
The 50% rule
You can deduct 50% of the cost of business meals. If you spend $100 on dinner with a client, you deduct $50.
During 2021-2022, Congress temporarily allowed 100% deduction for meals purchased from restaurants. That's expired. We're back to 50% for all business meals.
What you need to document
The IRS requires four pieces of information for every business meal:
- Amount: How much you spent (keep the receipt)
- Date and place: When and where the meal happened
- Business purpose: What business was discussed
- Who was there: Names and business relationships
A note on the receipt or in your bookkeeping app is enough. You don't need a formal document.
IRS Reference
See IRS Publication 463 (Travel, Gift, and Car Expenses), Chapter 2. Business meals are reported on Schedule C, Line 24b.
See IRS Publication 463 (Travel, Gift, and Car Expenses), Chapter 2. Business meals are reported on Schedule C, Line 24b.
Track meal expenses effortlessly
Snap a photo of your receipt, and Hivebooks categorizes the expense. Add a quick note about the business purpose and you're covered for tax time.
Try Hivebooks Free →What's NOT deductible
- Lavish or extravagant meals. The IRS doesn't define a dollar amount, but a $500 dinner for two will raise eyebrows.
- Grocery runs for your home. Personal meals are never deductible, even if you work from home.
- Entertainment costs. Golf, concerts, sporting events are not deductible (eliminated in 2018). But a meal at a sporting event can be if it's separately stated on the bill.