Little Known Trick to Turn a 50% Meal Deduction Into 100% Deduction


This post is in: Business
6 Comments

07-02-2010-1

More deductions = less tax. It’s that simple.

If you have a business meal where the expense is clearly reasonable and ordinary for the production of income in your business, you’ve got a 50% deduction. In other words, take your accountant to lunch to discuss your accounting or tax situation and you can take a deduction for 50% of the bill.

Most business owners are happy to get any deduction for meals. But are you ready to get even more?

Here’s how to turn a 50% deduction into a 100% deduction:

Meals that are eaten on business premises for the benefit of the employer, are 100% deductible.

So, if you have a small business and bring in coffee and bagels for the mandatory morning meeting, you have a 100% deduction for the coffee and bagel expense. Likewise, if everybody needs to work at their desk and you order in pizza, you’ve got a 100% deduction.

Now let’s turn that even healthier. How about having a personal chef bring in meals when you have to keep working at your computer or in meetings at the office? 100% Deductible How about hitting your favorite coffee house for a latte to go so you can get a jump on the email? 100% deductible.

Of course, like all business deductions, you must have a business first. And you need to be able to prove that the expense is for the benefit of the employer.



6 Comments

  1. Diane Kennedy says:

    Dianne, check into whether you qualify as claiming your daughter and grand-children as dependents.

  2. Dianne Engle says:

    My daughter was forced to resign from her job when her schooling required full time. Her employer was not willing to give her evening work or reduced hours. Unemploymentt refused her unemployment. Due to this we have paid $1600.00 every month for her and ththe children ‘s living expenses. Is there any tax break? Thanks.

  3. The oft overlooked method of making meals 100% deductible, is who pays for them. If, say for example, you and a vendor go out for lunch – when you pay for the meal — 50% deduction. If your vendor pays, your bill will reflect the meal in their prices…they will only deduct 50%, you can deduct 100% of your bill (just don’t let him itemize your bill!).

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