Meals

[Efritznp]

My husband is a pastor and president of a 501c3.  He often has people over for dinner.  Can I write off the cost of the food for the meal?  If so how?

[ktran9]

He can deduct 50% of the meal costs on his return.

• If his meetings with others are directly related to ministry or church-related discussions or activities, 
• If they are ordinary and necessary,
• If reimbursement from the church/ministry is not available.

However, he should maintain good proof to substantiate your meal deductions.

[Terri Lynn]

Good afternoon, Efritznp.  Thank you for joining us!

 You asked if you can write off the cost of food for people your husband has invited over for dinner.

In general, this would  really depend on the given situation.

If you’re a sole proprietor, you can deduct ordinary and necessary business meals as expenses, if the meal is directly related to or associated with his business. 

• To meet the directly-related requirement, you must show all of these:

  • The main purpose of the meal was to conduct of business.
  • You engaged in business during the meal.
  • You expected to get some sort of business benefit.

You might still be able to claim the meals as an  expense, even if the directly related test is not met, if you can meet the associated test.

• This test requires both of these to be true:
• The expense must be associated with the active pursuit of business.  Which means the expense must have a clear business purpose, such as getting new business or encouraging the continuation of an existing business relationship.
• You must also discuss a substantial amount of business before, during, or after the meal.

In addition, the expense claimed for the meal can not  be lavish or extravagant and the deduction is usually limited to 50% of the expenses.

For more information on Clergy related tax topics please see:

Ministers and Taxes 

Tax information for Clergy members 

Hopefully this helps!

Terri Lynn, EA

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer.”