Food and Dinning: How To Rate Them?

How much am I able to write off for Food and dinning for busienss?

• My business requires me to have meetings with clinets and I always pick up the tab. What is the max write off I am able to apply to my annual taxes for 06' for food?

• Answer:

  You need to be able to show that the expenses were business related first but you seem to have that covered. The rest of this is from the IRS site. 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct a higher percentage. See Individuals subject to “hours of service” limits, later.) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Figure A summarizes the general rules explained in this section. The 50% limit applies to business meals or entertainment expenses you have while: * Traveling away from home (whether eating alone or with others) on business, * Entertaining customers at your place of business, a restaurant, or other location, or * Attending a business convention or reception, business meeting, or business luncheon at a club. Included expenses. Expenses subject to the 50% limit include: * Taxes and tips relating to a business meal or entertainment activity, * Cover charges for admission to a nightclub, * Rent paid for a room in which you hold a dinner or cocktail party, and * Amounts paid for parking at a sports arena. However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. This image is too large to be displayed in the current screen. Please click the link to view the image. Figure A. Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. The 50% limit also applies to certain meal and entertainment expenses that are not business related. It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. It also applies to the cost of meals included in deductible educational expenses. Hope this helps!