Can I Claim Business Meals (50% Deduction) as a Business Expense in United States?
Partially — US business meals are 50% deductible under IRC Section 274(n). The temporary 100% deduction for restaurant meals (2021–2022 only) has expired. Entertainment is NOT deductible at all under TCJA.
What Internal Revenue Service (IRS) says
IRC Section 274(n) limits business meal deductions to 50% of cost when ordinary, necessary, not lavish, and either with a business associate or while traveling for business. Entertainment expenses (sports tickets, concerts, golf) are entirely non-deductible since 2018 (TCJA).
When you can claim
- 50%: meals with clients, vendors, prospects (ordinary and necessary)
- 50%: meals while traveling away from tax home for business
- 50%: meals during business meetings
- 100%: de minimis food and drink at the office (snacks, coffee)
- 100%: meals provided to employees as part of compensation reported on W-2
When you cannot claim
- Entertainment (sports tickets, concerts, theater) — entirely disallowed since TCJA
- Lavish or extravagant meals (judgment call)
- Meals where no business is conducted
- Spouse/family meals (unless they are bona fide employees attending for business reason)
Good to know
Important: The 100% restaurant meal deduction (Consolidated Appropriations Act 2021) was a temporary COVID measure and ended 31 December 2022. We are back to the standard 50% limit.
Related expenses
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