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Jake777
New Member

Turbo Tax incorrect regarding business meals?

Is the Turbo Tax Hone and Business edition incorrect when it provides that business meals are now only deductible while traveling?

 

This seems contrary to the IRS position:

  • Entertainment and meals: The new law eliminates the deduction for expenses related to entertainment, amusement or recreation. However, taxpayers can continue to deduct 50 percent of the cost of business meals if the taxpayer or an employee of the taxpayer is present and other conditions are met. The meals may be provided to a current or potential business customer, client, consultant or similar business contact.

 

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2 Replies
PaulaM
Employee Tax Expert

Turbo Tax incorrect regarding business meals?

You are correct. You do not have to be traveling to deduct your business meals. Enter your expenses under these IRS rules:

 

Business Meals Expenses

 

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Turbo Tax incorrect regarding business meals?

In 2019 TT Home and Business, you can enter this information under Business Income and Expenses/Business Expenses/Other Common Business Expenses/Meals/Meals: 50% Limit. 

TT notes for this entry that "Meal expenses include: ...Hosting a group business dinner at your home or a restaurant. Hosting a a group business dinner at private club [listed under more examples]."

This information then flows to the Schedule C Worksheet and Schedule C line 24b Meals: Subject to 50% limit.

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