Are business meals still deductible?

Business meals remain partly deductible when they have a genuine business purpose and are not lavish, and you or an employee are present. Entertainment, such as tickets to events or a round of golf, generally became nondeductible after 2017 even when business is discussed. Keeping the two categories separate, with clear records of purpose and attendees, is what protects the meal deduction.

Key points

Business meals are partly deductible when they have a business purpose, are not lavish, and the taxpayer or an employee is present.
Entertainment expenses such as event tickets, concerts, and golf became nondeductible after 2017 even when business is discussed.
Food purchased at an entertainment event is deductible only when it is separately stated or separately purchased from the entertainment.
Each business meal record needs the amount, date, place, business purpose, and the attendees with their business relationship.
A credit card statement alone does not substantiate a meal because it shows the charge but not the purpose or the attendees.

Which business meals are still deductible?

The rules for meals and entertainment under Section 274 shifted after 2017, and because the deductible portion for meals has been adjusted at various times since, verify the current-year treatment rather than assume it. The durable framework is clear: meals are treated one way and entertainment another, and the two must be kept apart.

A business meal generally qualifies when it has a genuine business purpose, such as a meal with a client, a prospect, a vendor, or an employee where business is conducted or discussed. The meal cannot be lavish or extravagant under the circumstances, and the taxpayer or an employee must be present; you cannot pay for someone else's dinner in your absence and deduct it. Meals while traveling away from home for business also generally qualify. The deduction is typically partial rather than full, reflecting that eating carries a personal element, which is why meals belong in their own expense account rather than lumped with fully deductible costs.

What happened to entertainment deductions?

Entertainment is the category that changed most sharply. After 2017, entertainment expenses became nondeductible, and this holds even when the entertainment is connected to business. Taking a client to a sporting event, a concert, a show, or a round of golf is not deductible now, regardless of how much business is discussed during or around it. This was a significant departure from the prior rules, and it still surprises owners who remember when client entertainment was a routine write-off.

When a meal is provided at or during an entertainment event, the meal portion can still be deductible if it is separately stated on the invoice or separately purchased. A restaurant meal that follows a game can qualify on its own; a single ticket price that bundles food with the entertainment does not, because the meal is buried inside a nondeductible cost. Getting an itemized receipt directly affects what you can deduct.

What records make a meal deduction hold up?

For each business meal, keep the amount, the date, the place, the business purpose, and who attended along with their business relationship to you. A credit card statement alone is not enough, because it shows the charge but not the purpose or the attendees. A quick note on the receipt or in an expense app at the time of the meal is what separates a defensible deduction from one that fails when questioned.

Build the habit of categorizing as you go: label meals as meals, code entertainment to a nondeductible account, keep the two apart when they occur together, and record purpose and attendees at the time.

What does the meal deduction not cover?

Meals with no business purpose, meals where no owner or employee is present, and lavish meals are not deductible. Meals bundled into an entertainment ticket are nondeductible along with the ticket. Food provided to employees at the workplace, once fully deductible as a de minimis fringe, has been scaled back and under current law becomes nondeductible after 2025 with narrow exceptions, so confirm the treatment for your year with your CPA.

Meal expense also remains a frequent examination item because records are so often thin, so a deduction claimed without purpose and attendee notes is an exposure rather than a benefit. Because the deductible portion has moved in recent years, confirm the current-year treatment before finalizing the return.