TAX DEDUCTIONS ON MEALS & ENTERTAINMENT

Meals and entertainment can be deducted if they are business-related expenses. The following criteria must be met to use this deduction:

- the meals or entertainment is directly related to the conduct of your business

- the meals or entertainment is directly after a bona fide business discussion

You can only deduct 50% of the cost of meals and entertainment. For purposes of record keeping, you'll need to write down who you were with, your relationship with that person, the business purpose and a summary of the business discussion. Also, be sure to keep receipts showing the cost, date, and location of your meals and entertainment.