# Can I deduct business meals?

Usually yes, but generally only 50% of the cost. Under IRS Publication 463, a business meal qualifies when you or your employee is present, the food is not lavish or extravagant, and it is with a current or potential customer, client, consultant or similar business contact. Entertainment itself is not deductible. A ProfitDrawer bookkeeping spreadsheet can keep meals in their own expense category so the 50% share is easy to work out.

More rules from the IRS:

- **Ordinary and necessary:** the meal must be a normal, accepted expense in your business.
- **Entertainment events:** food and drinks at an event such as a game or show count only if they are bought separately or shown separately on the bill or receipt.
- **Travel:** meals while traveling away from home are deductible when the trip requires you to stop for substantial sleep or rest, again generally at 50%.
- **Higher limit for some workers:** people subject to Department of Transportation hours of service limits, such as interstate truck and bus drivers, can deduct 80% of meals while away from their tax home.
- **Exceptions to the 50% limit** exist, for example meals you sell to customers or meals treated as pay to an employee.

**Example (example numbers only):** a $60 lunch with a client is recorded as $60, with a deductible share of $30.

Keep the receipt and note who you met and the business reason. General information, not tax advice.

- Source: [IRS Publication 463, Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Small business taxes
- Canonical: https://profitdrawer.com/answers/can-i-deduct-business-meals.html
- Publisher: ProfitDrawer (https://profitdrawer.com)