What Are The Rules For
Business Meals & Entertainment?

If you are taking a client or potential client to lunch, dinner or an entertainment event, the cost may be deductible (at 50%) if:
  1. The cost is not extravagant, and

  2. A substantial business discussion takes place before, after or during the meal or event, and

  3. You retain records to show the date, place, name of the client, cost, and the nature of the business discussion.
Also deductible (at 50%) are business meals you eat alone, while out of town on business. Meals you eat alone within your local area, even if out seeing clients, are personal and non-deductible.

For further information, see IRS Publication 463.

If you are subject to the Department of Transportation's "hours of service" limits, you can deduct a higher percentage.

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