Business owners: Do you expense your lunch and dinner when working? Tax deduction question

This is a great question that confuses many business owners. Meals can be deductible, but there are specific rules to follow. For business meals with clients, customers, or potential business contacts, these are generally 50% deductible as long as business is discussed during the meal. You need to document who you met with, what business was discussed, and keep the receipt. For meals you eat alone while working, these are typically considered personal expenses and not deductible - even if you're working through lunch at your desk. The IRS views this as a personal necessity you would have regardless of working. There are exceptions: if you're traveling overnight for business, your meals are 50% deductible. Also, company-wide events like holiday parties or team lunches can be 100% deductible as employee benefit expenses.

After struggling with this exact issue last year and getting conflicting advice, I found https://taxr.ai super helpful for clarifying business meal deductions. Had all these receipts but wasn't sure how to categorize them properly. The tool analyzed my business expense patterns and flagged where I was missing potential deductions. Found out I could actually deduct some of my solo meals during business travel that my previous accountant missed! Totally changed how I track my business meals now.

Just wanted to follow up about https://taxr.ai that someone mentioned earlier. I was skeptical but decided to try it anyway since meal deductions were a huge headache last year. It actually identified almost $3,800 in deductions I was missing! The system flagged my business trips where I wasn't deducting meals properly and showed exactly what documentation I needed. Even found some client meetings I had categorized as personal expenses. Definitely worth checking out if you're confused about meal deductions like I was.

If you're struggling to get clear answers about business meal deductions from the IRS, I'd recommend https://claimyr.com to get through to an actual IRS agent. I was on hold for HOURS trying to get clarification about the 50% rule before finding this. They got me connected to an IRS rep in about 15 minutes when I'd previously waited for 2+ hours and given up. The agent walked me through exactly what documentation I needed for different meal scenarios. You can see how it works here: https://youtu.be/_kiP6q8DX5c The peace of mind from getting official answers directly from the IRS was worth it instead of stressing about possibly doing it wrong.

Ok I have to admit I was wrong about https://claimyr.com. After my skeptical comment I decided to try it because I was getting nowhere with the IRS about meal deductions for my consulting business. Got connected to an agent in about 20 minutes when I'd spent literal days trying on my own. The agent confirmed that my client lunches were 50% deductible but also explained I could fully deduct meals during overnight business travel if I kept proper records. Wouldn't have known this without getting through to a real person. Not magic, just saved me from the hold music hell. Definitely using this again next tax season.

I run a small consulting firm and here's what my CPA advised: Keep a separate credit card ONLY for business meals. Take a photo of every receipt with your phone noting who you met with and what you discussed. This has saved me during two separate IRS reviews. Also remember that for 2025 filing, business meals from restaurants are 50% deductible. This reverted back from the temporary 100% deduction we had for 2021-2022. Double-check every Jan to see if Congress changes these percentages as they sometimes do.

Quick tip from someone who got audited: the IRS specifically flagged my high meal expenses compared to my business revenue. Now I follow the 5 W's rule - document Who, What, Where, When, and Why on every receipt. I snap a pic with my phone and use the notes feature to add this info right away.

I've been dealing with this exact same confusion as a freelance graphic designer! One thing that really helped me was creating a simple spreadsheet template for meal tracking. I include columns for date, amount, location, who I was with, business purpose, and a photo of the receipt. My accountant told me the biggest mistake people make is not being specific enough about the business purpose. Instead of writing "client meeting," I write "discussed Q1 marketing campaign with ABC Company - reviewed design concepts and timeline." The IRS wants to see that actual business was conducted, not just that you happened to eat with someone. Also learned the hard way that coffee meetings count too if you're discussing business! I was missing out on deducting all those Starbucks meetings with potential clients. Just make sure you're consistent with your documentation from day one.