Depending on the purpose of the meal, business meals may be tax deductible. In order to be eligible, the expense must be an ordinary, necessary part of conducting your business, cannot be lavish or extravagant, and an owner or employee must be present.
Listed below are the percentage deductions for various types of business meals:
Company parties – 100% deductible
Your own meals as part of doing business – 50% deductible (100% deductible if purchased from a restaurant for the tax years of 2021 and 2022 only)
Office meals – 50% deductible (100% deductible if purchased from a restaurant for the tax years of 2021 and 2022 only)
Meals with clients– 50% deductible (100% deductible if purchased from a restaurant for the tax years of 2021 and 2022 only)
Entertaining clients – 0% deductible
Be sure to keep documentation for the business meal, including the following details: amount, date, location, purpose, and attendees.
Visit the IRS website for more information: https://www.irs.gov/newsroom/irs-provides-guidance-on-per-diem-rates-and-the-temporary-100-percent-deduction-for-food-or-beverages-from-restaurants
