TurboTax FAQ
TurboTax FAQ
226 people found this useful

What types of meal and entertainment expenses are 100% deductible on a business return?

If meals or entertainment are provided for the benefit of your employees, you can write off 100% of the cost as a business expense. This is an exception to the usual 50% write-off rule for meals and entertainment.

Common examples of expenses that can be written off at 100% include:

  • Meal and entertainment expenses for a company picnic or holiday party.
  • Free coffee, bottled water, donuts, etc. provided to employees at the place of business.
  • Free food or beverages provided to the public for promotional purposes.
  • Meals provided at the place of business to more than half of the employees as an enticement for working after-hours, weekends, or holidays.
  • Cost of meals included on employee W-2 forms as taxable compensation.