Business Meals
Deduct 50% of meals with collaborators, sponsors, or while traveling.
Tax Form
Schedule C, Line 24b
Estimated Savings
$200-2,000/year
IRS Reference
Publication 463
Income Level
How It Works
Business meals are 50% deductible when you discuss business with collaborators, sponsors, agents, or other business contacts. Meals during business travel are also 50% deductible. The meal must not be lavish or extravagant.
IRS Rules & Requirements
- Only 50% of the meal cost is deductible
- Must have a business discussion during or directly before/after
- You or an employee must be present
- Cannot be lavish or extravagant
- Record who attended and business discussed
Real Examples
Lunch with a brand manager discussing a sponsorship = 50% deductible
Dinner with a collaborator planning a video = 50% deductible
Coffee meeting with your accountant = 50% deductible
Common Mistakes to Avoid
- Not documenting who attended and what was discussed
- Deducting meals with friends as business meals
- Forgetting that only 50% is deductible
- Not keeping itemized receipts
Pro Tip
Write the business purpose and attendees on every receipt immediately. A note on the back of the receipt like 'Lunch with @creator - collab planning' is perfect.
Related Deductions
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