📅 Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition)

 

📅 Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition)

Business meals can be a legit tax deduction — but only if you follow the rules. And no, your solo sushi craving doesn’t count (unless your client’s name is “Tax Return”).

Let’s break it down.

🍽️ What Counts as a Deductible Business Meal?

In 2025, most business meals are 50% deductible, but some are 100%. Here’s how to tell the difference:

✅ 50% Deductible

• Meals with clients or prospects (as long as business is discussed and you’re present)
• Meals while traveling for business
• Team lunches or working meals (not lavish)

✅ 100% Deductible

• Company-wide events (like holiday parties)
• Meals provided for the employer’s convenience (e.g., working late at the office)
• Promotional events open to the public (like a launch party with snacks)

🚫 Not Deductible

• Entertainment (concerts, sports games — even if business is discussed)
• Meals that are overly extravagant
• Personal meals or groceries

🧾 How to Document It (Without Losing Your Mind)

• Keep the receipt
• Note the date, attendees, and business purpose
• Use a “Meals & Entertainment” category in your tracker or accounting software

💡 Pro Tip from a CPA
If you give event tickets as a gift and don’t attend, it might be deductible as a business gift (subject to the $25 limit). But if you go with them? It’s entertainment — and not deductible.

Coming up next: Day 7 – How to Hire Your Kid Legally- And Save Taxes.