That’s a question many entrepreneurs and business owners ask when they’re planning trips.
The answer is yes, in some circumstances. However, there are certain rules and regulations that apply to deducting meals when traveling for business purposes.
The Internal Revenue Service (IRS) allows taxpayers to deduct up to 50 percent of their meal costs while traveling for business. This deduction applies to meals taken away from home and includes both breakfast and dinner. However, the taxpayer must be traveling away from home for more than an ordinary day’s work in order to qualify for this deduction.
In addition, the IRS sets limits on what can be deducted as a meal expense while traveling. Generally, meal costs must be reasonable given the circumstances of the trip. For example, if you are staying at a luxury resort, you will not be able to deduct your extravagant dinner as a meal expense.
Other Considerations:
It’s important to keep all receipts for meals taken while traveling for business purposes because these will need to be itemized on your tax return. Also, it’s important to remember that any alcohol purchased with meals cannot be deducted as an expense.
Conclusion:
Yes, meals on business travel can be deductible under certain conditions specified by the Internal Revenue Service (IRS).
Meal expenses must be reasonable given the circumstances of the trip and receipts should always be kept. Additionally, any alcohol purchased with meals cannot be deducted as an expense.