Under IRC §274(n), meal and beverage expenses for business purposes are 50% deductible. Coffee at a client meeting, a working breakfast, or coffee purchased while traveling for business all qualify. Office coffee provided to employees may be 50% deductible.
Getting the deduction right is not just about whether it is allowed — it is about how you set it up.
Note the business purpose on the receipt -- who you met with and what was discussed.
Save receipts. Note attendees and business topic on each receipt.
Deduct 50% as meals expense on Schedule C.
Do not deduct personal coffee runs with no business purpose.
Use a business credit card for all client meetings to create a clean paper trail.
When structured correctly, this deduction can significantly reduce your taxable income.
Here is how this deduction typically works in real situations:
A freelancer buys coffee for a client meeting 3x per week ($15/meeting).
An LLC provides coffee for weekly team meetings.
Owner deducts all personal coffee purchases as business expenses.
Key Takeaway: The difference between a valid deduction and a denied one usually comes down to documentation, usage percentage, and proper structuring. The same expense can be fully deductible, partially deductible, or not deductible at all — depending on how it is handled.
Only if it is purchased during a business meeting or business travel. Personal coffee is not deductible.
Yes -- coffee provided to employees at the office is 50% deductible.
