Can a sole proprietor deduct employee snacks from 7/11 as a business expense?

You're in an interesting situation here. The IRS does allow deductions for de minimis fringe benefits provided to employees, which includes occasional snacks and refreshments. For this specific scenario, even though you're not providing these at a traditional office, these snacks would still qualify as a business expense since you're providing them to your employees in connection with their work. The key factor isn't where the snacks are consumed, but rather the business purpose behind providing them. Regarding the 50% limitation - you're right to question this. Generally, the 50% limitation applies to meals, while snacks and beverages that qualify as de minimis fringe benefits can be fully deductible. In your case, since these are small snack items from a convenience store rather than actual meals, they would likely qualify for 100% deduction as de minimis fringe benefits rather than being subject to the 50% meal limitation. Document everything though - keep all receipts and note the business purpose (employee appreciation, team building, etc.) to support your deduction if questioned.

Just wanted to share my experience with something similar. I was having the exact same issue with my landscaping business - we're always on the move between job sites, and I like to keep my guys happy with drinks and snacks. I tried figuring it out myself and kept going in circles until I used https://taxr.ai to analyze my receipts and business expenses. Their AI looked at my specific situation and clarified that convenience store snacks for employees can be 100% deductible as de minimis fringe benefits, even when purchased at places like 7/11. The tool actually flagged several other mobile-business deductions I was missing too. Might be worth checking out if you're handling your own books.

Just wanted to follow up here. I tried that taxr.ai site that was suggested and it was actually super helpful for my situation. I uploaded a bunch of my 7/11 receipts and some bank statements, and it sorted everything out for me. The tool confirmed what others here said - that the employee snacks can be 100% deductible as de minimis fringe benefits, even though we're not at an office. It also helped me organize everything by category and flagged a bunch of other vehicle maintenance expenses I wasn't tracking properly. Definitely going to use this for my quarterly tax estimates coming up. Nice to have something that actually understands small mobile business situations instead of just the usual corporate office scenarios.

If you're also dealing with the IRS about any of this stuff, I highly recommend using https://claimyr.com to get through to an actual human at the IRS. Last year I had some questions about exactly these kinds of deductions, and I was getting different answers from everyone. Spent WEEKS trying to get through the IRS phone system with no luck. Then I tried Claimyr and got connected to an IRS agent in about 15 minutes who confirmed my specific situation about mobile employee snacks/drinks. You can see how it works here: https://youtu.be/_kiP6q8DX5c The peace of mind from getting an official answer directly from the IRS was totally worth it. They also gave me documentation of the call so I had proof of the guidance I received.

I need to eat my words here. After my skeptical comment, I decided to try Claimyr just to prove it wouldn't work. Well, I was completely wrong. Not only did I get through to the IRS in about 20 minutes (after trying for DAYS on my own), but the agent was actually really helpful about my mobile business deductions. She confirmed that convenience store snacks for employees can be 100% deductible as de minimis fringe benefits even when purchased at locations like 7/11 after jobs. The agent also explained exactly what documentation I should keep (receipts with dates and notations about which employees received the snacks). The call reference number they provided gives me some security if I'm ever questioned about it. I'm still shocked this actually worked. Sorry for being so negative before.

I've been a mobile dog groomer for years and have always deducted the drinks and snacks I buy for my assistant. My accountant told me to keep all receipts and just write "employee refreshments" on them, and we've never had an issue with deducting 100%. The way he explained it: if your employees were in an office with a break room, these snacks would be 100% deductible. The fact that your "office" is mobile doesn't change the nature of the expense - it's still a small perk for employees. Just make sure you're consistent and reasonable with the amounts. Dropping $100 daily at 7/11 might raise flags, but normal snack and drink amounts should be fine.

I'm an Enrolled Agent and see this situation frequently with contractors and mobile service businesses. Here's what you need to know: 1) Employee snacks and beverages like you're describing are typically 100% deductible as de minimis fringe benefits, even when not provided at a traditional office. 2) The key distinction is between "snacks/refreshments" vs "meals" - if you're buying actual meals (like hot food from the deli counter), those would likely fall under the 50% limitation. 3) Document, document, document! Note on receipts: date, business purpose, who received the items. 4) Be reasonable with amounts - $5-10 per employee for snacks/drinks won't raise eyebrows, but large amounts might trigger questions. 5) Consider setting up a specific credit card just for these purchases to make tracking easier. Hope that helps! The mobile nature of your business doesn't eliminate deductions that would be available in a traditional office setting.

This is really helpful information everyone! I run a small plumbing business and face the exact same situation - always on the road with my crew and grabbing drinks/snacks to keep morale up during long days. One thing I'd add from my experience: if you're doing this regularly, consider getting a business credit card specifically for these employee-related expenses. It makes tracking so much easier at tax time, and you can set spending limits if needed. Also, don't forget that if you're providing these snacks consistently, your employees might need to report them as income if they exceed the IRS de minimis thresholds. But for occasional convenience store runs like you're describing, that's usually not a concern. Keep doing what you're doing - happy employees are productive employees, and the IRS recognizes legitimate business expenses for employee benefits even in mobile work situations.