Business meals can be more than just a good time—they can also be a tax-saving opportunity. If you entertain clients, travel for work, or treat your employees to lunch, you might be eligible to claim the business meals deduction. However, the IRS has specific rules about what qualifies.
In this guide, we’ll explain what meals are deductible, how much you can claim, and what records you need to keep.
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What is the Business Meals Deduction?
The business meals deduction allows taxpayers to deduct a portion of the cost of meals that are directly related to their business activities. This deduction can help lower your taxable income, but it only applies to meals that meet certain criteria.
Historically, the IRS allowed a 50% deduction for most business-related meals. During 2021 and 2022, this was temporarily increased to 100% for meals purchased at restaurants due to pandemic-related relief measures. As of 2023 and beyond, the standard 50% deduction has returned in most cases.
What Qualifies as a Deductible Business Meal?
To qualify for the business meals deduction, the meal must be ordinary, necessary, and directly related to your business. The IRS requires that:
- The meal is with a business associate (client, customer, partner, employee, or professional contact)
- There is a clear business purpose or discussion
- The meal is not lavish or extravagant under the circumstances
Examples of deductible business meals include:
- Taking a client out to lunch to discuss a project
- Meals while traveling overnight for work
- Team lunch during an employee training or meeting
- Meals at a conference or business seminar
💡 Tip: Keep notes or calendar records to show the purpose and participants involved.
What’s Not Deductible?
There are several situations where the business meals deduction does not apply:
- Meals with no specific business discussion
- Lavish meals that go beyond reasonable business expenses
- Meals with friends or family unrelated to business
- Meals included in entertainment expenses (unless billed separately)
It’s important to separate entertainment from meals. If you take a client to a baseball game and buy dinner at the stadium, the meal may be deductible only if the cost is itemized separately on the receipt.
For more information, see IRS Publication 463.
How Much Can You Deduct?
In most cases, the business meals deduction allows you to deduct 50% of the qualifying meal expense. Here’s a breakdown:
| Type of Meal | Deductible? | % Allowed |
| Client lunch during a business meeting | Yes | 50% |
| Coffee at your desk alone | No | 0% |
| Team meal for staff training | Yes | 50% |
| Restaurant meal during overnight travel | Yes | 50% |
Meals must be reasonable and appropriately documented to qualify.
Recordkeeping Requirements
The IRS requires adequate documentation for all deductions, and meals are no exception. To claim the business meals deduction, keep:
- The date and location of the meal
- The business purpose of the meal
- Names and relationships of people involved
- Itemized receipts (not just credit card slips)
Digital tools like Expensify, QuickBooks, or even a dedicated spreadsheet can make tracking easier.
💡 Tip: Write the purpose of the meal directly on the receipt before uploading or storing it.
Staying organized year-round makes claiming the business meals deduction much easier come tax time. Our Month-End Bookkeeping Checklist includes tips to help you consistently track expenses like meals, mileage, and more.
Tips to Maximize Your Business Meals Deduction
Want to make the most of this deduction while staying compliant? Here are a few best practices:
- Use a dedicated business credit card to separate expenses
- Avoid combining entertainment and meal charges on the same receipt
- Create internal meal reimbursement policies for employee-related meals
- Track and log meals regularly, not just at tax time
- Consult a CPA for advice tailored to your business
Misclassifying meal expenses is one of the most common accounting mistakes we see with small businesses. A few small errors can add up to big problems at tax time—so it pays to get them right.
If you’re not sure whether a specific meal qualifies, it’s better to ask than to assume. The IRS often scrutinizes meal deductions during audits, especially if records are unclear.
Frequently Asked Questions About The Business Meals Deduction
What qualifies as a deductible business meal?
A deductible business meal must involve a client, employee, or business associate and have a clear business purpose. Meals during travel or work-related meetings are typically eligible.
Are business meals 100% deductible in 2025?
No. Most business meals are only 50% deductible. The temporary 100% deduction allowed in 2021–2022 for restaurant meals has expired.
Can I deduct coffee or lunch I eat alone while working?
Generally, no. Meals consumed alone without a business meeting or travel context are considered personal and are not deductible.
What records should I keep to claim the business meals deduction?
You should keep the receipt, date, location, names of attendees, and the business purpose of the meal. The IRS requires detailed documentation to support the deduction.
Can I deduct meals during business travel?
Yes. Meals while traveling for business are typically 50% deductible, as long as the trip qualifies as work-related and involves an overnight stay.
Final Thoughts: Business Meals Deduction
The business meals deduction is a useful way to recover some of your business spending, but it comes with rules. By understanding what qualifies, maintaining good documentation, and staying on top of IRS changes, you can safely take advantage of this deduction.
If you have questions or want help reviewing your deductions, the team at Beckley & Associates PLLC is here to help. We offer personalized tax planning services to ensure you don’t leave money on the table.
Need support maximizing your tax deductions? Schedule a consultation with our team today.