In 2023, most meal and entertaining expenses can be deducted for government and regulatory tax purposes. However, it is crucial to ensure that these expenses are done legally and with every “i” dotted and “t” crossed. For example, if you pay for a client’s night out but don’t accompany them, it is nondeductible. The same applies to a client meal at a restaurant where you invite friends or spouses—the cost of your friends is nondeductible (but you can write off half the client). If you don’t accompany your client, you can deduct the cost as an entertainment expense or as a gift. For a lunch to qualify as a business expense, there must be a discussion about business between the client and company owner, preferably before the alcoholic.
For 2023, most business meals are just 50 deductible, according to the IRS rule. However, you can take a 100 deduction for some meals provided to employees, including client business meals (if the taxpayer is present and the meal is not lavish or extravagant), meals included as taxable compensation to an employee or business meals at a restaurant. To promote increased business spending at restaurants, the cost of taking a client out to lunch can be written off 100 of the cost if it’s business-related.
The tax code allows for certain meals to be deducted as business expenses, typically at a 50 rate. However, the rules can be complex. Learn how to write off meals for your business, including IRS guidelines, eligible expenses, and tips for maximizing your tax deductions. Business meals are eligible for a 50% tax deduction, so you can deduct half the bill the next time you treat your client to dinner and drinks.
📹 Business Meal Tax Deduction | How to Write Off Food
Keeper is delightfully smart tax filing software that’s especially useful for people with 1099 contracting & freelance income.
Can I write off coffee as a business expense?
Coffee is subject to the same rules as meal expenses, and can only be deductible if it is an ordinary and necessary expense or if it benefits your staff or clients. Freelancers, independent contractors, and small business owners can claim their coffee as a business expense by claiming it as a necessary expense or if it benefits their staff or clients. The answer depends on the specific situation and the nature of the coffee habit.
Can I write off meals as a freelancer?
Deducting business meals, whether over coffee or during travel, is a tax-efficient way to save money. However, only 50% of the cost of the meal can be deducted, and the expense must be reasonable for the industry and the context of the meeting. Meals paid while traveling must be reasonable for the area. Eligibility for this deduction depends on the meal being with a current or potential business client, consultant, or employee, and the environment conducive to business discussions.
Similarly, freelancers can write off professional and legal services, such as hiring a CPA for accounting or a lawyer for a business contract, as deductible expenses. These deductions are subject to specific guidelines and industry contexts.
Can I claim coffee machine for business?
A coffee machine is regarded as office equipment and may be claimed as a tax deduction if utilized for work-related activities. The cost basis of the machine encompasses the initial purchase price, delivery and installation fees, and any other expenses incurred in its acquisition. The calculation of depreciation may be performed using either the Prime Cost Method or the Diminishing Value Method, according to the specific requirements of the user.
Can you claim coffee as an expense?
While daily coffee or lunches are not tax deductible, there is a loophole for meeting clients or visiting sites during meetings. You can treat yourself to a coffee on the business side, but it won’t be tax deductible. While it can be a business expense, you won’t receive tax relief on it. Buying clients drinks or coffees during meetings is a good way to treat yourself, but not a tax deduction.
Can I claim Starbucks as a business expense?
Starbucks orders can be deducted from taxes if they are considered business meals, with the cost not being lavish or extravagant. The tax code allows for 50 percent deduction for business meals, including Starbucks coffee, provided they are for business purposes. The general rule is that expenses should be ordinary and necessary, as they are common and expected in business. It is advisable to keep records of income and expenses, as well as receipts, as they can provide proof of expenses in case of a tax audit. It is also important to remember to save receipts for proof of expenses in case of a tax audit.
How do freelancers claim expenses?
Freelancers can claim business expenses such as hiring an accountant, paying for a solicitor, hiring a surveyor or architect, and other expenses. They can also claim insurance premiums for Professional Indemnity Insurance or Public Liability Insurance. Professional Indemnity insurance is crucial for freelancers and contractors as it protects their business and provides security. It covers legal costs and expenses incurred in defense or compensation awards for clients who make a claim against them. This policy is vital for protecting their business and providing peace of mind in case of a client’s claim.
What is the deduction for freelancers?
Freelancers in India can claim tax deductions under Section 80C of the Income Tax Act, up to Rs. 1, 50, 000 per year. These deductions can be claimed under various tax-saving schemes, such as 80D, 80E, and 80G. Clients often deduct TDS from the amount paid to freelancers, which can be claimed when filing income tax returns. If a freelancer’s total tax liability exceeds Rs. 10, 000 for a financial year, they must pay an advance tax amount every quarter.
The total tax payable is calculated after adding receipts, savings account income, and property income, deducting freelance expenses, including TDS. Non-payment can result in penalties under sections 234B and 234C of the Income Tax Act.
Can I claim meal allowance?
A meal allowance claim can only be made if the taxpayer receives a meal allowance from the employer and it must be included in the assessable income. If a meal allowance is incorporated into salary under a workplace agreement, no deduction is allowed. Expenses for food or drink can be claimed without evidence if an overtime meal allowance has been paid, is paid or payable under Commonwealth, State, or Territory law, and the total claim is considered reasonable by the Tax office.
How to write things off as a freelancer?
As a freelancer, you can claim various expenses such as credit card interest, home office expenses, training programs and educational expenses, health insurance premiums, business mileage and travel expenses, and deductible taxes. These deductions are applicable to both new and experienced freelancers. It’s crucial to understand which business expenses you can claim as a self-employed worker when submitting your taxes, as there are certain expenses that are deductible and others that aren’t. Additionally, there is a pass-through tax deduction that can impact your tax return at the end of the year.
How to make money writing about food?
Food bloggers can generate income through various methods, including sponsored posts, affiliate marketing, selling products, hosting cooking classes, writing cookbooks, selling meal plans, food photography services, and creating a YouTube channel. Monetizing a food blog allows creators to invest more time and resources into their passion, transforming it into a sustainable business. Motivations for starting a blog range from financial freedom to connecting with a broader audience. Understanding how to make money from blogging is crucial for anyone looking to turn their culinary prowess into a profitable venture.
What is a food freelancer?
A freelance food writer is tasked with the creation of content pertaining to culinary topics for dissemination in either online or print formats.
📹 Can You REALLY Write off Daily Meals?
Stay tuned for 2025 Tax Workshops for Business Owners! ▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭▭ ABOUT …
Hi there Tyra, I have a quick question for you. My dad does chemotherapy treatment deliveries around the state that we live in, and is often on the road from 3AM until 3-4PM. I want to help him as this is his first time being classified as an independent contractor, so I am wondering if the meals that he purchases during his deliveries are deductible? Thank you for the content, I look forward to perusal more of your articles!
I absolutely love this article. Exactly what I was wanting to know. I have one suggestion, and maybe you have already done this since this is form several months ago. It is a little thing, but I think would make a big difference. The audio sounded like you were in an empty room and I think if you had a good mic close by, it would make a big difference. Like I said, a little thing and maybe I am the only one who notices this lol. Anyways, I love what you are doing and keep up the good work!
My husband has a gospel group. Small business LLC. They were giving themself per diem checks for food and travel. We are just learning about tax write-offs. We keep track of all expenses already in case we get audited. They are on the road traveling every weekend and stop or go through a drive-through for meals. Would this qualify as a business meal?
My business is almost fully food related. For example, I’m an American living in Japan and I bought a whole bunch of candy for one article and a whole bunch of chips for another article. I sat down and tried each flavor, looked up what the Japanese words meant, etc and did an entire article on Americans reacting to Japanese food. Would those be tax deductible? I also do cooking articles. For example I making a article on banana bread, miso soup, croissants, etc. Are the ingredients for those recipes tax deductible? For restaurants, I take tons of pictures and then I write up blog posts AND I go out to eat for inspiration for my new recipes. For example, I tried a “sushi burrito” just for inspiration for a new recipe. What about those expenses?
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WOW! I am a Los Angeles Firefighter and have been for 15 years and was told by my tax guy that I CAN NOT write off my meals at work even though we have it written in our rules that we “shall participate in organized mess, unless we have a note from our doctor that is approved by the Division Chief” I can’t believe you are talking about my job, love you and thank you for everything!
I love the fact that Jasmine always does her research before making these articles. She is very knowledgeable and speaks the facts instead of pushing some fake narrative to get views. I also love that she’s not afraid to put others articles up and tell them how they are incorrect. Thanks for sharing your knowledge and advice Jasmine. Keep up the good work.
As a fellow EA I really appreciate you not only mentioning the statute with proper citation but the court cases that built on the reason many of these meal deductions get denied. Good range of years on the court cases as well. With two to follow up at the end after Moss. Unfortunately, I do not have an Instagram, but I wanted to compliment your style I appreciate learning from your articles. They’re useful in my current job.
I just learned about this website while scrolling on Reels/Tiktok/Shorts, and this is the first long-form article of yours I’ve watched. I LOVE IT! Perhaps this is just the nerdy side of me who loves numbers, taxes, and laws, but this was incredibly interesting and entertaining to me. I’d love more content like this.
I’m a bookkeeper and love hearing these posts. I REALLY love telling someone close to me that he can’t deduct what he wants to bc everyone else is doing it (wardrobe is always a fun argument). My fav part is really the “Oh Shit… born of ignorance” when she discusses the Moss case. Didn’t expect that one. 😊. I don’t have IG, so I can’t participate in the raffle but I’ll continue to enjoy the posts!!😊
I swore I understood english until I really started taking my business seriously. Legal lingo is even more confusing than I initially thought. I have to read things a billion times over lol. Though I do wonder, what the taxes say about people who work on the road? 🤔 I feel like the cafe case makes more sense. Since they continued the same thing everyday. Definitely interesting cases indeed.
I love the fact that you show the cases and the law to prove these tax fraudsters wrong. I used to think a lot of what they said is true until I started to notice that the laws were made specifically for certain instances. Whereas these individuals take advantage of those laws by Misinterpreting them.
Love your passion on tax topics. Having been on both sides (prep and enforcement), your articles are spot on! Now for the meat and potatoes (see what I did there 🙂), so we have established that daily meals are NOT deductible and rightfully so. For those that disagree or want to play the game (i.e. the wanna be tax pros on Youtube), I want to know why you think deducting daily meals would be ok. Again W-2 employees who talk business during lunch are not permitted to deduct their daily meals. I know there is a difference between a W-2 employee and self-employed / businesses BUT a daily meal is a daily meal! Keep up the good work Jasmine on bringing to light the shenanigans that too many do and promote!
Assuming someone took the time to break out what they ate vs what a client ate, would taking a client to lunch and paying for their meal be deductable? As long as you broke out what you ate every time so you didn’t deduct your meals? A couple situations that I was thinking as hypotheticals: 1.) You just highlight or somehow document which items were consumed by the client. Any receipts which you forgot to so that to are treated as fully self-consumed. 2.) You have a contract with your clients that explicitly state one paid-for meal to meet monthly to review your service to them. Again, self documented. Perhaps a formbis filled out and signed by the client even.
Interestingly in Switzerland every employee can deduct 15 swiss franc (that’s about 15 dollars) per lunch provided that you work too far away (usually a few miles) for you to go back home to consume your meal. So you don’t even have to go through the trouble of deducting it from your business, just deduct it from the personal tax returns (provided again, you work too far away to go back home for lunch). And what’s more interesting is that you don’t have to provide proof of the expense, that means that technically (even if it’s not legal I believe) you could just cook at home and bring your lunchbox to work (spending let’s say 5 dollars) and deduct 15 dollars, that translates to literally 10 dollars “free” deduction.
There seems to be such a pervasive false assumption among most tax advice influencers and even actual tax preparers, that just because they put something on a return, and it gets accepted and processed by the IRS, that that somehow means the IRS has reviewed and agreed with the positions taken. Just because you tried something shady and got away with it, does not mean it’s legit!
My favorite part is the pyramid! 😅 I’m a visual guy. Pictures make sense. 👍 Although 🤔 it saddens me greatly… 🤦🏾 that pyramid needs to be upside down. 😂 I’m not subscribing attributes specifically, but I could see how most small business owners would operate with an upsidedown pyramid mentality. 😰
Just common sense says a private chef at your home with your family isn’t deductible. The same logic would lead you to believe all expenses someone has could be deductible because you’re the owner of a business. That mortgage? Well that’s the mortgage of the CEO and their sleep benefits the business.
It sounds as though you are saying that it is acceptable for a court to reach beyond the intent of the statute, creating law from the bench. Would that not be unconstitutional to allow judges to alter or add to the meaning of a statute, instead of adhering to the black letter meaning? In short, it is “dead wrong” because a person who did not write or pass the legislation/rulemaking decided that it would be so?
Hmm, would the Appeals court decision be the same if it were a diabetic in the position of having to attend the business lunch every day? The meal becomes “necessary” to prevent the attendee from incurring hypoglycemia (low blood sugar) which can lead to loss of consciousness and other similarly not wonderful physiological conditions?
ADHD is strong with this one today. I had to watch this article a few more times because it was dense and just flew over my head. But my favorite part would be the quote that ‘rules them all’. “Daily meals are an inherently personal expense, and the taxpayer bears a heavy burden in proving they are routinely deductible.” There’s too much information out there, misleading people into talking about what they have limited knowledge about. Especially when they put their trust in individuals guiding them with the wrong information.
While you are certainly correct, as a lay citizen I find it ridiculous that the court can interpret legislation opposite of the literal text of the statute, to support the bureaucracy’s whims and divining of authority. I guess the court is saying that the literal interpretation of the statute undermines the overall intent of the statue? Did the legislature not carefully craft the original verbiage? Is any of this likely to change post Chevron?
STOP! In Summer 2024 in Loper Bright the Supreme Court overruled Chevron. Jasmine was correct that Treasury could evade the literal meaning of the Internal Revenue Code on,y while Chevron was the law governing administrative agencies. Under Loper Bright there is every reason to believe the literal meaning of a statute will predominate over an agencies’ distortion. Further, the Supreme Court indicated even long standing federal agency regulations could be challenged under the new Constitutional guidelines.
Regardless, this “business lunch” deduction is absolutely absurd and corrupt to begin with. Why should other taxpayers have to help pay for YOUR expensive restaurant meal? This is so corrupt. It’s not like businesspeople can’t meet in an office to discuss business. No, apparently everyone else has to pay for them to stuff their guts in expensive restaurants.
I’ve screen recorded & stolen for myself, 3 gems from this article 😂 but if I had to pick my favorite it’d be from 8:06 to 8:09 where Jasmine cites the principle which I’ll forever remember, which is that for it to be a qualified deduction it has to be “… more or different than (we) would otherwise would do personally.” Thank you Jasmine @itsbonitosahagun
This article was super clarifying on this question. As a small business startup co-founder and a contractor I have struggled with this stuff a lot. Your website came highly recommended. The part about distinguishing that the statute wasn’t read literally was very good to know. And yes also great to have that context to be wary of “Tax strategists”. I would like to enter the giveaway @oatmealworld
I’m VERY thankful that I found your page. I’ve spent countless hours commenting on Karlton’s (and other’s) articles, explaining why a lot of them are misleading / incorrect. I get these types of articles sent to me from my clients constantly. Now instead of having to explain each one, I just say, “don’t follow them, follow Jasmine”.
Enjoyed how you broke down the statute by discussing the cases – great teaching approach – helps with learning and retention. Have been holding back with officially starting a business because of fear of business laws and taxes – fear of messing up. This was very helpful. Thanks for sharing! @leaunastone
Thank you for shedding light on such a crucial topic, Jasmine! Your explanation of the nuances surrounding the deductibility of daily meals was both enlightening and essential for anyone navigating the complexities of tax law. I appreciate how you broke down the foundational hierarchy of tax law, emphasizing the importance of IRC 162(a) and the precedent set by landmark cases like Sutter v. Comm’r and Moss v. Comm’r. As you highlighted, the distinction between personal and business expenses is pivotal. The court’s determination that “daily meals are an inherently personal expense” establishes a tough but necessary barrier for taxpayers seeking deductions for routine meals. Your use of the PB&J sandwich example brilliantly illustrates the personal versus business expenditure dilemma, highlighting what someone might choose when dining out with a potential client versus opting for a homemade meal. This analogy drives home the point that unless the meal can clearly differ from personal spending, it cannot be considered a deductible business expense. Additionally, your mention of the firefighters’ case – where mandatory meal contributions were justified for deduction – shows how context is critical in tax liability considerations. These real-world examples not only clarify complex concepts but also underscore your dedication to ensuring your viewers come away with a solid understanding of tax law. It’s evident that your passion for your profession as a tax attorney, CPA, and enrolled agent shines through in your work.
thank you so much I am so honored to be announced as the winner of the hooman tax attorney giveaway What am I going to do next you say? I’m going to DisneyWorld!!! (And I’m writing off the entire trip because I hear the Disney hotel uses an extremely itchy 1 ply toilet paper from China called Charmaine Hard (Charmin Soft Knockoff) and I’m thinking about using that toilet paper in the office bathroom at the rental office I rent for one day every year. Because I will be exploring the appropriateness of this TP while at Disney, I can write off every cost for the last 8 years of raising my children than got us to this place we are now, all my transport costs to get to Disney, All my ISP and tech costs going back my entire life because I would not have gotten here without that, and in writing off Disney itself as well actually. I hear Disney World is worth $85 Billion and I just as a customer helped this business so I will be claiming a $85B tax refund this year. Thanks Dr. J attorney at law
As someone who knows nothing about tax laws, it was refreshing listening to a longer format with explanations and examples of this. It’s easy to take short clips as the truth specially when it’s repeated amongst different creators. Thank you for the time you’ve put into spreading knowledge! @dancejustcause
I once helped a part-time worker by pointing out the travel & meals she had to buy (necessary and reasonable) on her required, occasional travel to/from her 2nd job were tax-deductible. Or course full/partial deductibility of travel & entertainment & meals has changed a bit over recent years. Always keep good records of mileage, tolls and meal expenses (incl. if one used the meal as a time to talk or do business with someone). Fun!
Another good article Jasmine. Yeah, Karlton does have some good articles with legit advice, but several he has out there should be retracted. I practice now on my Enrolled Agent license and not my CPA license, and I will not give advice on Youtube. You’re one of the best at what you do. Jason Knotts is also a really good CPA with great articles. Thanks Jasmine. Keep up the great work!
I’m in the process of started an LLC and I realized how necessary keeping business and personal separate is so necessary thanks to you! My favorite part of this article is how you were able to highlight the specific portions of each of the court cases and apply them in the everyday example, it helped break down the precedents into common understanding! Thank you! harley_breanne
What I enjoyed the most about the article was how you cited different court cases, presenting both sides of the results. The example you gave at the beginning with the two different scenarios really simplified the concept and made it easier to grasp. The way you wrapped up the article at the end was just so enjoyable to watch! @silaikano
Love that you are not afraid to say how you are trying to grow your book of business. The invaluable information that you give to everyone is amazing! Organic lead generation through value that you have provided for everyone. If I ever have a client that needs your expertise, I know where I am sending them!
Your articles are interesting and clear even though the subject is tax law. I enjoy them. This topic about business meals made it clear how to decide: is the meal infrequent and unusual. For years I worked in city government and would from time (infrequently) to time invite and buy lunch at a restaurant for other city leaders in order to carve out time from their busy schedules where I could discuss business. I usually packed my own lunch. I learned from this article that I probably could have deducted the cost of my “business” lunch though I never did choosing to be cautious and in my mind law abiding with my taxes. I’m retired now. We didn’t have the internet and easy access to information like we do now. I’m also wondering why my tax accountant didn’t ferret this out way back then. 😊
Virginia resident. Contractor working in North Carolina over an hour from home. I get a power diem split on my pay for lodging, but nothing for meals. I obviously can not take two and a half hours to go home and eat, so by nature I am required to eat local to the job which costs more than my pb&j or a home made burger, soup, or steak. Are those meals deductible?
OK you got me on this one. I know a lot and knew about half of what you just went through on the history. That isn’t good enough though, just one mistake in a string of conditions is all it takes to fail an audit. Goning forward to i can expense more meals than i used to. The 50% deductible portion has made it mostly irrelevant in my buainess. I have a unusual work and food schedule. Pretty much every time I meet to talk business its unusual and not a place I normally go, oddly I wouldn’t eat where i meet people because im a food geek and only go to ethnic family restaurants or Nuevo places. Be careful on food, I lost a deal because I took a couple of young guys to a restaurant that intimidated them. Luckily we got a waiter that remembered me, and I let him take charge but it was awkward when one of them asked to have the Wagu steak tartare cooked. Waiter politely said no and got a massive tip. better_house_llc
Every quarter, I surprise my employees with a free lunch from a restaurant of their choosing. I literally do not select my preference. It is a little treat for them. I think as a business owner, you should keep the idea of moderation in your head. If you’re being responsible and treating ppl to occasional meals during working hours, then this can be a write-off in most circumatances.
I started my business 8 years ago. I literally did not know what I was getting into. I have made mistakes and learned a lot. The most frustrating part is not getting the input I need from the professionals I hire to help me. I feel like I am on an island most of the time. Your articles always help. I don’t abuse meals, but am now much more aware thanks to you. You know your stuff!!! And glad you take the time to debunk all of the shit out there. Greatly appreciate you.
Have you done anything on the ethics of taxation. This is probably more opinion, but given that we likely only retain about 65% at best and depending on your situation 50 to 30 with all of the taxes we pay. My opinion is that our tax dollars are spent on things that do not benefit us as taxpayers. What is your opinion or factual information? if you can even discuss it.
Well.. i have to say that was informative and that this trend of tax strategist on social media has really become an echo chamber for incorrect information. I’ve been following Carlton for a while because the guy really seemed like he knew what he was talking about but listening to your break down has really shed some light on the granular nature of these tax “loopholes”. Oh, favorite part was Fitch v Comm’r having the CPA lose their case for this same rule that all these tax professionals are preaching is just gold.
What i love about your work is that you actually give us the case law and take time to explain how the legal hierarchy works in tax law. It’s a marvelous and necessary competing voice to all the disinformation that it’s out there by people that think that just because they can read the tax code they are now equipped to represent themselves or worst represent others…” they read the literarily and then go “shit! All these licensed professionals are wrong…” spot on accurate. If you ever make a course for lawyers who want to cross over to tax law, i’d be happy to be your student.
I love how you call out bs clickbait content and back up your answers with caselaw. I also like that you give short easy to digest content that gets the gears turning about tax planning and how to be a better business owner overall. I also love that you are so dedicated to being the best at what you do and inspiring people along the way. I never thought one of my favorite content creators would be a tax professional! @timincoloradosprings
All I have learned from this episode is that the law has so much complex wording. It is totally out of control. You basically have to be a word guru. You have to be able to see how the government and the people who control it want to control you and how you spend your money. Money is a numbers game and if you can convolute the numbers with wording only those who know wording can control the numbers with law and can control you. For me at the end of the day it is all about resources and how to acquire them for me. Law, for me is also sometimes based on personal opinion and interpretation on the way the law is written for a specific reason or purpose or people.
I think it would be fair to display (if it exists) examples where people currently do this. I guess to say there is a huge inherent bias in using cases because it indicates something that has been flagged and challenged by the IRS. so if someone wherre to have an example of this woeking legally without challenge there would be no case to reference so it doesnt show the limit of whats possible currently, what if they had done it once a week in the moss? case. right whay are the parameters where things are deducted.