I hope someone can verify this for me -

When traveling on business, meal costs are deductible at 50% of their value.

Yes, it seems simple but it can be hard to find straight info on this.

I thought they were 100% deductible.

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I haven't seen anything that says that directly.

I'm very certain that business lunches local to where you work are only 50% deductible, but if you're on the road it seems different rules may apply.

I tell you, the IRS and the accountants are in bed together. Kind of like the candy and dental industies - but at least candy is sweet.

I still think we should abolish the IRS.

Nope, I think business lunches are 100% deductible up to a certain cap. The theory is, if it weren't for the necessity of impressing you lunch date, you'd be brown bagging it instead and eating a cheese sandwich in the office.

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When I was traveling, all meals on the road were 100%, I am pretty sure.
I would have to verify that with my accountant, though.

it's 50%. has been for a number of years now.

it doesn't matter if it's local or travel. i've filed this every year for the last twenty.

Doesn't it have to do with whether you're just feeding yourself or "entertaining" a client?

If the meakl is scheduled to accomodate business before after or during.. it's deductible.

Even if your client has already eaten and doesn't order. =D


3p

wurm Wrote:
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> Doesn't it have to do with whether you're just
> feeding yourself or "entertaining" a client?


Travel meals AND Business Entertainment are 50% deductible.






Edited 1 time(s). Last edit at 02/13/2006 12:43PM by graylocks.

Always been 50% for me.

I guess the IRS reasoning is that you have to eat anyways so there's no way it should be 100% deductable. Unless you're fasting, they're probably right.



Edited 1 time(s). Last edit at 02/13/2006 12:10PM by Mike Sellers.

From the IRS web site:


For business travel, are there limits on the amounts deductible for meals?

Meal expenses are deductible only if your trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. The amount of the meal expenses must be substantiated, but instead of keeping records of the actual cost of your meal expenses you can generally use a standard meal allowance ranging from $30 to $51 in 2004 depending on where and when you travel.

Generally, the deduction for unreimbursed business meals is limited to 50% of the cost that would otherwise be deductible.

For more information on business travel expenses and restrictions, refer to Tax Topic 511, or Publication 463, Travel, Entertainment, Gift, and Car Expenses, and Publication 1542, Per Diem Rates .

References:

Publication 463, Travel, Entertainment, Gift, and Car Expenses
Tax Topic 511, Business travel expenses
Publication 1542, Per Diem Rates