Under the Tax Cuts and Jobs Act (2018), entertainment expenses are no longer deductible. Business meals remain 50% deductible if: (1) the meal has a business purpose, (2) a business owner or employee is present, and (3) the meal is not lavish or extravagant.
Getting the deduction right is not just about whether it is allowed — it is about how you set it up.
The meal must have a clear business purpose -- discussing a deal, reviewing a project, or meeting with a client or prospect.
Write on every receipt immediately: date, who attended, business purpose, and what was discussed. Use a dedicated business credit card.
Deduct 50% on Schedule C. Keep receipts with contemporaneous notes.
Do not deduct entertainment (concerts, sports) -- it is no longer deductible. Do not deduct solo lunches unless you are traveling overnight for business.
Use a dedicated business credit card for all meals to simplify record-keeping.
When structured correctly, this deduction can significantly reduce your taxable income.
Here is how this deduction typically works in real situations:
A freelance consultant takes a client to lunch to discuss a new project. The bill is $120.
An S-Corp owner hosts a team lunch for 8 employees to discuss Q4 strategy. The bill is $400.
A business owner deducts all restaurant receipts including personal dinners with family.
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.
50% for most business meals. The 100% deduction for meals provided for the convenience of the employer phased out in 2025.
Generally no -- solo meals while traveling overnight for business are deductible, but a solo lunch at your office is not.
No. Entertainment expenses (concerts, sporting events, golf) are not deductible since the Tax Cuts and Jobs Act of 2018.
Click your profession to see all the write-offs that apply to your full tax profile.
