Can I deduct business meals?

Yes, you can deduct the cost of meals that are considered ordinary and necessary for carrying on your business. The meals must have a clear business purpose with the business owner or an employee present, and cannot be lavish or extravagant. It’s important to keep solid records and receipts for business meals, as it’s a commonly audited expense due to it being exploited by many who use the deduction for personal expenses.
 
They’re either 50% deductible, or 100% deductible. Generally, most meals fall in the 50% bucket.
 
50% Deductible:

• Meals with clients, customers, or employees for business purposes (i.e. - discussing business during or shortly before/after the meal).
• Meals while traveling for business.

 
100% Deductible:

• Company-wide events like holiday parties, or team-building events (for the benefit of employees, open to all employees, not just a select group).
• Meals included as taxable compensation to the employee (reimbursed meals included in a W-2).
• Meals provided to the general public for promotional purposes (like open house events or marketing events)