What Are The Rules For
If you are taking a client or potential client to lunch, dinner or an entertainment
event, the cost may be deductible (at 50%) if:
Business Meals & Entertainment?
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.
- The cost is not extravagant, and
- A substantial business discussion takes place before, after or during the
meal or event, and
- You retain records to show the date, place, name of the client, cost, and
the nature of the business discussion.
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.