Meals for Small Business

[Juliemozz]

I am confused by the new Meals expense rules implemented in 2018 (I am currently working on 2018 taxes, so this is the first time I've had to deal with these new rules).  In the small business expenses, the Meals & Entertainment section now says "Meals While Traveling".  I know we can't claim Entertainment, but I  need clarification on the Meals deduction.

So, are we still able to claim 50% of meals where we meet locally with clients specifically to discuss business or are we only allowed to claim meals while away from home/traveling (classified as "longer than a regular working day" and "requires time off to sleep")?  In other words, as a small business owner, if I meet a client at a restaurant 5 minutes from my home to discuss business, can I write off 50% of that meal or not?  Another example, as a professional musician, if I eat a meal during a break while performing at a local gig, can I write off 50% of that meal or does it have to be an out-of-town gig?  If I can write off these types of meals, then do they go under "Meals While Traveling"--the only place I can find to enter meals now in TurboTax--or somewhere else?

Thank you!

[AmeliesUncle]

The rules for meals really didn't change in 2018, just entertainment.  

For most people, the two situations that you can deduct meals is (1) with a client to discuss business and (2) when you are out-of-town overnight.

So yes, your 5 minute away meal with a client is deductible.

But no, eating during your local gig would not be deductible.  Only if you were out-of-town.

There should be a place for non-travel meals (for local meetings with clients), but it probably doesn't really matter.  It will end up pretty much the same on the tax return.

As a side note, for tax years 2021 and 2022, the new law allows 100% deduction for meals, as compared to 50% for all other years.

[Juliemozz]

Great, thank you!