Is That Lunch Tax-Deductible? What the IRS Wants to Know Before You Write Off Your Tacos 🌮

Let’s talk about something tastier than spreadsheets: lunch. Or dinner. Or even that artisanal coffee you grabbed with a client. Can you deduct it? Maybe. But before you start trying to write off your daily lattes as “business research,” let’s cover what the IRS actually requires for a meal to qualify as a legitimate business expense.

First, the Golden Rule of Business Meals 🍽️

The meal must be directly related to your business or associated with the active conduct of your business. Translation: you need a legit business reason for the meeting — networking, strategy, client development, etc. Sharing nachos with your buddy while maybe talking about your side hustle doesn’t quite cut it.

What’s Deductible (and What’s Not)?

✅ Usually Deductible at 50%

• Meals with clients, prospects, or business partners

• Meals while traveling for business

• Meals during company events or team meetings

🚫 Not Deductible

• Personal meals (even if you swear you had a great business idea over brunch)

• Entertainment (like concert tickets — unless meals are billed separately)

  
  

The IRS is Hungry for Details 📋

If you ever get audited, here’s what you’ll need to have on hand:

1. Who was there?

   • Names + business relationship (client, partner, prospect, etc.)

2. What was the business purpose?

   • A short note like “Discussed Q2 marketing strategy with client.”

3. When and where?

   • Date of the meal and the restaurant/location

4. Receipts!

   • Save that itemized receipt (not just the credit card slip).

   • If it's over $75, a detailed receipt is required.

     
     

How Long Do You Need to Keep This Stuff?

Hold on to your receipts and notes for at least 3 years — that's how long the IRS typically has to audit your return. But if you’re the “better safe than sorry” type, keeping records for 6 years is even safer.

Bonus Tip: Go Digital 📱

Use an app (or just your phone’s camera) to snap a photo of the receipt and jot a quick note about the meal right after it happens. Future You will be very thankful during tax season.

Bottom Line:If it’s a legit business meal, document it like a boss. A little record-keeping now could save you a big headache later — and keep the IRS off your back.

Got questions? We love talking tax over coffee (and yes, that one can be deductible 😉).

Reach out anytime!

—H6 Small Business Solutions

Helping you stay compliant and caffeinated.

Disclaimer

The content provided on this blog is for general informational purposes only and does not constitute accounting, tax, or financial advice. While we strive to ensure the accuracy of the information presented, we make no guarantees regarding its completeness or applicability to your specific circumstances. Always consult with a qualified professional before making any financial decisions.