PBA Tip of the Day brought to you by Kerry Freeman with Freeman Income Tax Service (623) 518-2157.
As a broad rule, business owners and self-employed taxpayers may deduct up to 50% of the cost of meals directly related to conducting business. Examples might include meeting with potential clients over lunch, purchasing meals during business travel, or ordering food delivery for an after-hours employee meeting.
Deducted meal expenses must not be lavish or extravagant.
In addition, the taxpayer, or an employee of the taxpayer, must be present for the furnishing of food and beverages. Therefore, sending pizzas to a potential client’s office would generally not qualify for the business meal deduction. For more tax tips and information, contact Kerry today!