Most expenses incurred when dining or entertaining for business related purposes are tax deductible. Watch this video for the quick scoop.

[youtube id=”YIrpq8Iw0cs” mode=”normal” align=”center” autoplay=”no” maxwidth=”800″]

What you need to know:

  • When dining with other people (eg. clients, vendors, associates), and that dining experience is business related, all incurred expenses are tax deductible.

  • When traveling outside of your daily office commute, meal expenses are tax deductible.

  • The definition of a dining expense can be further expanded to entertainment expense as long as it is business related.

  • Probably only 50% of these mentioned expenses are actually deductible on your tax return.

  • Some examples when 100% of dining expenses are deductible is

    • food is brought in to the office because employees are working overtime.

    • can be considered simple fringe benefits such as coffee and donuts.

    • the meal is open to the public as a promotion campaign.

    • it is a team building event such as company picnic.

 

What you need to do:

  • Track all of your dining and entertainment expenses that are business related in your books.

  • Keep receipts (preferably digital) attached to your bookkeeping transactions.

  • Write small notes on the receipts stating how the meal or entertainment expense is business related.

  • Verify the deductions you have taken are legally allowed with a tax professional.

  • File your taxes!