Unfortunately, business meals are only 50% deductible for tax purposes. However, there are two ways your business meals can be 100% deductible, according to the IRS.
Recreational Expenses for Employees
Normally meals are 50% deductible and entertainment is not deductible at all. But if the meals are for recreational, social, or similar activities for your employees then they aren’t subject to the 50% limitation such as for a holiday party or summer picnic. You can also deduct the expense of the facilities in this situation.
Meals for Advertising
If you provide meals to the general public as a form of advertising or promoting goodwill, then the cost is 100% deductible. Think of situations of sponsoring a show or having a booth at a community event.
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