Hello Mary, I often have meetings with clients over lunch or dinner. Can I deduct these meals? If so what are guidelines?   -A. Jordon

Yes, you can deduct business meals when entertaining a client. However, you should use the following guidelines.

You must have records to prove the business purpose (under the applicable test) and the amount of each expense, the date and place of the entertainment/meal, and the business relationship of the persons in attendance. You do not have to show that business income or other business benefits actually resulted from each entertainment/meal expense.

The IRS recommends that you keep the actual receipt, and we suggest that you write the names of the persons in attendance on the actual receipt and keep them in an envelope labeled Business Entertainment/Meals Expenses 20___.

Ask a Question