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posted Mar 15, 2021 7:32:57 PM

In the description part of deducting meals, do i put what the meal was for or the name of the place i ate at?

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1 Best answer
Employee Tax Expert
Mar 15, 2021 7:57:56 PM

It doesn't matter what you use as the description as long as you keep detailed records backing up your deductions.   You can group them by category, 50% deductible and 100% deductible.  Meals can be deducted as a business expense if they are directly related or associated with the active conduct of a trade or business (with a valid purpose and documentation). Once this test is established, the expense falls into two categories: 50 percent deductible or 100 percent deductible. There is an additional caveat that if a meal is considered “lavish and extravagant” under the circumstances, the extra portion attributable to extravagance is not deductible at all. Meals with employees or business partners are only deductible if there is a direct or indirect business purpose.

 

For more details on which meal expenses go in which category, please see the following help article.  

1 Replies
Employee Tax Expert
Mar 15, 2021 7:57:56 PM

It doesn't matter what you use as the description as long as you keep detailed records backing up your deductions.   You can group them by category, 50% deductible and 100% deductible.  Meals can be deducted as a business expense if they are directly related or associated with the active conduct of a trade or business (with a valid purpose and documentation). Once this test is established, the expense falls into two categories: 50 percent deductible or 100 percent deductible. There is an additional caveat that if a meal is considered “lavish and extravagant” under the circumstances, the extra portion attributable to extravagance is not deductible at all. Meals with employees or business partners are only deductible if there is a direct or indirect business purpose.

 

For more details on which meal expenses go in which category, please see the following help article.