Can I deduct client meals and entertainment?

Business meals can be subject to limits and exceptions.

Usually claim 50% of the lesser of the actual cost and a reasonable amount for qualifying business food, beverages and entertainment. Exceptions exist. Keep the attendees and business purpose with the receipt.

Records to keep

• The original bill or document, with date and amount.
• A note of the business purpose and any allocation calculation.

A common mistake

A category label alone does not establish eligibility. Review the facts before claiming.