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miclase2016
Level 3

I am a private tutor and I usually buy snacks for my students, are those expenses deductible? To what percentage?

 
1 Reply
Cynthiad66
Expert Alumni

I am a private tutor and I usually buy snacks for my students, are those expenses deductible? To what percentage?

You can deduct these as 100%.  Considered Refreshments for clients and not a meal.

 

With the business entertainment deduction repealed for tax years 2018-2025, some people (including us) were left wondering if going out to dinner with a business associate or taking clients to happy hour is considered "entertainment" and therefore not deductible.

To provide interim guidance, the IRS issued Notice 2018-76, which states that business meals aren't treated as entertainment (which means they're still 50% deductible) as long as all five of these conditions are met:

  1. The expense is an ordinary and necessary expense in conducting the trade or business.
  2. The expense is not lavish or extravagant under the circumstances.*
  3. The taxpayer or his/her employee is present at the meal.
  4. The meal is provided to a current or potential business customer, client, consultant, or similar business contact.
  5. For meals provided at or during an entertainment activity, the meals are either purchased separately from the entertainment or the meal and entertainment costs are separately stated on a bill, invoice, or receipt.†

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