I will let you determine the percentage by reading the information below. Food costs are a deduction for self-employed. There are two rates; 50% and 100%. Here are the differences:
The types of expenses listed below are generally 50% deductible, if they are reasonable (not extravagant) and directly related to conducting current or future business.
Examples include:
- Meals while traveling for business (alone or with business associates)
- Meal when you attend conventions, trade shows, business conferences
- Hosting a group business dinner at your home
- Hosting a group business dinner at a private club or restaurant
More examples:
- Meals for potential customers or clients (at home or out)
- Business meals at a club
- Meals during hunting, fishing, rafting, skiing or similar outings with business colleagues
- The cost of meals for a business associate's spouse (and your own, if other spouses are attending)
While most meal expenses for business are only 50% deductible, there are a few exceptions to this rule that are fully (100%) deductible.
Examples include:
- Company parties, picnics, team-building offsites, outings for all employees
- Fees to rent space for company gatherings, offsites
- Cost of hosting charitable events and meals for the general public
- Meals provided to the public as a means of advertising
- Meals for children at a daycare facility (if you use the standard allowance for meals and snacks, and you are reimbursed for them, you can only deduct the portion of the standard allowance that exceeds the reimbursement)
Tip: It's always smart to keep good records of these expenses, such as guest lists, receipts for the actual event that you hired a limousine for and notations on the business purpose and topics discussed for each expense.
