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Let’s be real – a big part of building a business is building relationships. And a lot of times we build relationships over coffee, meals, and maybe an occasional drink. So how do you write-off these expenses that are required to grow your business?? Keep reading.
Business meals generally are 50% deductible. This means that if you take a client out to dinner and your bill is $60, you get a $30 write-off. The IRS lists five tests that must be passed in order to deduct meals:
An exception to this is if you are traveling. If you are traveling for business, either out of town or outside of normal business hours, meals by yourself are also deductible. Say you are traveling to Florida for a Mastermind and on your way you have lunch at the airport. That meal is deductible.
But just remember, while meals are deductible, entertainment expenses are NOT. These entertainment expenses include country club membership fees, golf tee fees, yoga classes, sporting events, etc.
Kiara takes a client to a baseball game where she buys hot dogs and beers for herself and her client. The cost of the game is not deductible. However, she can deduct 50% of the cost of the food and drinks as long as they were purchased separately from the tickets.
Another great perk is when you take your team out for a holiday meal or celebration, or if you host an office party. The meal costs for these events are 100% deductible!
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