Business travel meals and entertainment expenses are deductible if your business trip is overnight or long enough so that you need to stop for sleep or rest to perform your duties. Meal expenses are also deductible if the meals is business-related entertainment, such as taking a customer to an educational or sporting event if business is discussed.
Deducting travel meal expenses can be calculated by either of the following methods:
1. The actual cost. If you use this method, you must keep records of your actual costs such as lodging, meals, taxi, airfare, bus, tolls, and tips.
2. The standard meal allowance, which is the Federal meals and incidental expense (M&IE) per diem rate. You can find the per diem rates by location at gsa.gov. The lower rates listed apply for the first and last days of travel.
The deduction for unreimbursed business meals is subject to a 50% limitation.
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