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posted Jun 4, 2019 7:18:22 PM

I manage a restaurant and eat out as means of research. Can I write off certain meals that are considered educational? A colleague used a bank statement as evidence.

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1 Best answer
Alumni
Jun 4, 2019 7:18:23 PM

Some might argue that it's deductible but I wouldn't claim the expense.  It's very difficult to take a patently personal expense and turn it into a business tax deduction. I think you would have a very difficult time winning the issue if questioned by the IRS.

(This type question comes up often  in different contexts such as -

  • I'm a waiter (or chef), can I deduct eating out to get menu ideas from other restaurants.
  • I'm in broadcasting, can I deduct my cable television to keep abreast of current trends
  • I'm a wine steward, can I deduct additions to my personal wine collection so I can speak knowledgeably about wines I sell
  • I'm an actor (or set designer, etc.), can I deduct the cost of going to Broadway shows and plays.
  • I'm a musician, can I deduct music CD's I collect that keep me informed of new trends and techniques.

All of these deductions would be difficult to sustain on audit.  Even if you could, you would need meticulous records showing time, place, purpose, etc. and it needs to be relevant.  Also, meals would only be 50% deductible.

If you choose to claim the deduction you must make sure it is relevant.  For example, if you manage a low end or high end restaurant, you should avoid deducting meals at the other end of the spectrum.  I would solve that by not claiming the personal expense.


1 Replies
Alumni
Jun 4, 2019 7:18:23 PM

Some might argue that it's deductible but I wouldn't claim the expense.  It's very difficult to take a patently personal expense and turn it into a business tax deduction. I think you would have a very difficult time winning the issue if questioned by the IRS.

(This type question comes up often  in different contexts such as -

  • I'm a waiter (or chef), can I deduct eating out to get menu ideas from other restaurants.
  • I'm in broadcasting, can I deduct my cable television to keep abreast of current trends
  • I'm a wine steward, can I deduct additions to my personal wine collection so I can speak knowledgeably about wines I sell
  • I'm an actor (or set designer, etc.), can I deduct the cost of going to Broadway shows and plays.
  • I'm a musician, can I deduct music CD's I collect that keep me informed of new trends and techniques.

All of these deductions would be difficult to sustain on audit.  Even if you could, you would need meticulous records showing time, place, purpose, etc. and it needs to be relevant.  Also, meals would only be 50% deductible.

If you choose to claim the deduction you must make sure it is relevant.  For example, if you manage a low end or high end restaurant, you should avoid deducting meals at the other end of the spectrum.  I would solve that by not claiming the personal expense.