I just ran into an Entrepreneur Magazine article with tips about writing off meals and entertainment costs for your business. There was a time that meals and entertainment was 100% deductible as a business expense. The IRS, however, has historically been very leery of some of these dinners and events and keeps chipping away at the expenses that qualify. For example, you may not be able to write off the dinner your wife or husband enjoyed while you were legitimately having business dealings with a partner or prospect. As always, be sure to consult with your accountant to determine what is and is not a deductible meal and entertainment expense.
Whenever you have a business lunch or dinner, though, be sure to write down (it is best to do this on the actual receipt) who was there with you, what sort of business was conducted and when (before, during or after the mean). By keeping this information on the receipt, you also maintain the date, time and place of the lunch or dinner.
Has anyone ever had the IRS question a meal or entertainment expense? We’d love to hear about what issue the IRS had and how you resolved it.
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