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PrintMeal and Entertainment Expenses
As a small business owner, you may find yourself in the position of having to entertain clients or customers. While this sort of thing is often a business necessity, the costs can really add up. You'll be glad to know that the IRS allows you to take a deduction for 50 percent of your qualifying business entertainment expenses.
What requirements do your meal and entertainment expenses need to meet in order to be deductible? Generally, the answer is that you can deduct ordinary and necessary expenses to entertain a customer or client if:
- Your expenses are of a type that qualifies as meals or entertainment.
- Your expenses bear the necessary relationship to your business activities.
- You keep adequate records and can substantiate the expenses.
