Meal receipts and Taxes

5 Replies

Good time of the day to everyone! 

How do you treat your expenses for eating while you working on your property away from home?

I purchase and renovate my own properties. While I am renovating my properties I am forced to eat outside my home. I do have to say that none of my properties located beyond 20 miles from my home address. Are they still tax deductible?

Meals are an often abused area of tax deductions that the IRS commonly screens for.  In my tax practice we generally only take meals deductions if the business travel requires an overnight stay.   Meals are limited in the amount you can deduct if you meet that standard.  The IRS only allows 50% of meals to be deducted.

I wouldn't take your normal lunches that just happen to be at your flip...nope. 0% chance. 

I go to work everyday and eat lunch here. Why would that be tax deductible because I'm not at home?

If you....have lunch with a business partner 

Coffee with a contractor 

Treat the crew to pizza 

ect

Then I'll deduct it at 50%. 

OUTSTANDING! Thank you, everyone!

Hi all, 

I know this is a little bit different, but thought I would see what your collective thoughts are on it. 

In my 'day job' in addition to real estate I have a kitchen & bath remodeling business with a 'retail showroom'.  We meet with potential clients and often either have coffee & donuts or sometimes cook and have lunch with them so they can see how different layouts, appliances and cabinets function to see how well it might fit there needs. 

Would the groceries we buy which add up over time be deductible the same way that meals with clients are?

Thanks, Dan Dietz

Hmmmm tricky 

I would personally expense it at 100%. It's more a business expense than M&E to me which are limited to 50%. 

You're not going out to eat. You're utilizing the food to showcase your produce you're selling. I'd call it Demonstration supplies in quickbooks and I would deduct it like any other business expense. 

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