Business Meal and Entertainment Deductions in 2025

Business Meal and Entertainment Deductions

Current Rules

The Tax Cuts and Jobs Act made significant changes to meal and entertainment deductions.

What's Deductible

Business Meals – 50% Deductible

• Meals with clients, customers, or business associates where business is discussed
• Meals provided for employee convenience on business premises
• Meals at business conferences or seminars

100% Deductible Meals

• Company-wide holiday parties or picnics
• Meals provided as employee compensation (taxable to employee)
• Meals at team-building events open to all employees

What's NOT Deductible

• Entertainment expenses (tickets to sporting events, concerts, etc.) – no longer deductible
• Lavish or extravagant meals
• Meals for personal purposes

Documentation Requirements

For each meal deduction, record:

• Date and place
• Business purpose
• Names and titles of people present
• Amount and receipt

Best Practices

• Use a dedicated business credit card
• Note the business purpose immediately after the meal
• Save all receipts, even small ones

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Questions about what you can deduct? Our business tax experts have the answers.